LG Electronics has agreed to acquire Israeli vehicle cybersecurity risk assessment solution provider.
The deal will initially involve the South Korean tech giant taking a 64 percent stake valued at U$140 million with plans to acquire the remaining shares in the near future. LG will also invest another US$20 million in Cybellum upon conclusion of the trading process in Q4. Cybellum will remain an independent entity and brand.
Founded in 2016 in Tel Aviv, it is collaborating with key industry players to deliver its products to vehicle manufacturers and suppliers worldwide. Cybellum will enable LG to pre-emptively secure a sustainable growth engine in the rapidly growing automotive cybersecurity industry and deliver more value in key areas such as parts design, development and operation by optimising software security.
“Cybellum has developed the most comprehensive product security management offering in the industry and joining forces with LG will enable us to further accelerate the realisation of our vision. We expect to grow significantly in the near future,” said Slava Bronfman, CEO of Cybellum.
“It’s no secret the critical role software plays in the automotive industry and with it comes the need for effective cybersecurity solutions. This latest deal will further strengthen LG’s solid foundation in cybersecurity, enabling us to be even more prepared for the era of connected cars,” said Dr Kim Jin-yong, President of the LG Electronics Vehicle component solutions company.