Intel Corporation INTC is nearing a deal to acquire Isreali urban transit startup Moovit for about $1 billion, TechCrunch reported Sunday.

What Happened

The California-based technology giant had previously led a $50 million investment in Moovit in 2018, and has been in talks with the startup about an acquisition for the past six months.

Sources told TechCrunch that the startup will become a part of Intel's Israeli automotive hub, if the acquisition is successful.

The hub is led by self-driving technology developer Mobileye that was acquired by Intel back in 2017 for $15.3 billion.

Moovit's core service includes providing real-time traffic data and intelligent routing, something that could be key to Intel's efforts in developing automation technologies, TechCrunch noted.

Intel is looking to keep the startup's talent post acquisition and about 10% of the $1 billion payout, as part of the deal, will go towards employees in a retention package, TechCrunch noted based on a Hebrew-language report from The Marker.

Moovit was last valued at $500 million during the last investment round in 2018. According to its latest figures from 2020, its platform has been used for more than 800 million rides across 102 countries.

Bayerische Motoren Werke AG BAMXF, LVMH Moet Hennessy Louis Vuitton SE LVMUY, and Sequoia Capital's Israel division also hold stakes in the startup.

Price Action

Intel closed 4.2% lower at $57.47 on Friday and was mostly unchanged in the after-hours session.