South Korean electronics giant LG Electronics on Thursday announced plans to acquire Israel-based automotive cybersecurity company Cybellum for roughly $240 million.
LG said it will initially acquire a 64-percent stake in Cybellum for $140 million and it will acquire the remaining shares in the near future — if the valuation does not change, the remaining shares will be worth nearly $80 million.
The Korean tech giant also plans on investing $20 million in the cybersecurity firm through a simple agreement for future equity (SAFE) after the trading process has been completed in the fourth quarter.
Cybellum provides vehicle cybersecurity risk assessment solutions, and the company claims to be working with vehicle manufacturers and suppliers around the world.
The company’s Cyber Digital Twins platform is designed to protect vehicles against cyber threats by creating a detailed representation of their software components and checking them for vulnerabilities. Users are also provided recommendations for addressing identified issues.
The acquisition of Cybellum is part of LG’s “strategy to strengthen its business portfolio through strategic acquisitions, alliances and partnerships, with a strong focus on its vehicle components business.”
LG said the acquisition will help it develop more secure automotive software and enhance its vehicle components business, while allowing Cybellum to expand its solutions.
Cybellum will remain an independent entity and brand following the acquisition.
“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 realization of our vision. We expect to grow significantly in the near future,” said Slava Bronfman, CEO of Cybellum.
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