Intel, a US giant corporation, has announced that it has agreed to purchase Mobileye, a Jerusalem-based developer of advanced vision and driver assistance systems, for $15.3 billion. I

It was sold for $63.54 per share cash deal, thus making it as the world’s biggest purchase of a company solely focused on the autonomous driving sector. This is by far the largest acquisition of an Israeli high-tech company which could propel Intel’s position into the front ranks of automotive suppliers, very far outside of its core business franchise.

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Mobileye has developed sensors and artificial intelligence which allow a vehicle’s on-board computer to essentially know where it is in relation to other vehicles, pedestrians and its surroundings which are key technologies necessary for cars to safely self-drive. It accounts for 70 percent of the world market for advanced driver-assistance and anti-collision systems.

It is expected that the transaction between the two companies will be closed within the next nine months, Intel said. This is to immediately increase Intel’s non-GAAP earnings per share as well as its free cash flow.

Presently, the two companies are working with German automaker BMW on a project to put a fleet of around 40 self-driving test vehicles on the road in the second half of this year.

Mobileye has previously worked for a decade with Franco-Italian chipmaker STMicroelectronics to manufacture chips which Mobileye sells to many of the world’s top automakers for its current, third-generation of driver-assistance systems.

However, for its fifth-generation of chips, Mobileye has teamed up with Intel. This will be used in fully autonomous vehicles scheduled to be available around 2021. Other partnerships include one with Delphi working on a self-driving platform that is being shopped to smaller car companies that may not have the resources to develop their own systems.

Mobileye was founded in the year 1999. It made its company mission the reduction of vehicular injuries and fatalities. It has a market value of $10.6 billion and is listed at the New York Stock Exchange since 2014. It employs 660 personnel and just last year reported to have an adjusted net income of $173.3. million.