LG continues its automotive pivot with the acquisition of Cybellum for $ 240 million
LG has announced further expansion in the automotive industry with the intention of acquiring cybersecurity company Cybellum, which detects vulnerabilities in hardware and software developed for vehicles.
The South Korean electronics company will assume an approximate 64% stake in the $ 140 million Tel Aviv-based startup, in addition to a $ 20 million contribution as of simple agreement for a future capital note (SAFE).
The remaining shares will be acquired in the “near future” and will be valued at this point, with the total price estimated to be around $ 240 million based on the current valuation.
The move comes as part of a broader move away from LG’s more traditional lines of business, such as the smartphone business, which was shut down in April, and to emerging markets such as the auto industry.
“It’s no secret the critical role software plays in the automotive industry and with it the need for effective cybersecurity solutions,” said LG Electronics Vehicle component Solutions Company president Dr. Kim Jin -yong.
“This latest agreement will further strengthen LG’s strong cybersecurity foundation, allowing us to be even better prepared for the era of connected cars. “
Founded in 2016, Cybellum distributes a number of vehicle security and threat detection services to customers around the world, with operations in the United States, Japan and Germany.
Its most advanced product is a digital twin platform. This creates a detailed representation of a vehicle’s software components without accessing the source code and exposes all the risks that can potentially be exploited.
This platform relies on a flow of real-time threat intelligence to find vulnerabilities and provides a comprehensive assessment of all detected vulnerabilities along with recommended actions.
With Cybellum, the South Korean electronics company has added to its growing portfolio of investments and acquisitions in the automotive space as it aims to strategically expand its business operations.
LG previously acquired ZKW Group, an automotive lighting company, in August 2018. Vehicle software company Sonatus also raised $ 35 million in July this year, with LG being a major investor.
Also in July, LG launched a joint venture with the world’s third largest automotive supplier Magna International to create the LG Magna e-Powertrain. It is a new company, based in South Korea, which will hire 1,000 employees to manufacture eclectic motors, inverters, on-board loads and other e-drive hardware.
Integrating Cybellum into LG’s existing operations will allow it to preemptively manage cybersecurity issues as they arise in production, and build the resilience of the hardware and software it designs and develops. .
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