LG Electronics’ (LG) board of directors has approved the acquisition of Cybellum, a vehicle cybersecurity risk assessment solution provider.
The deal allows LG to assume an approximate 64 percent stake in the tech company valued at USD 140 million, a strategic move that will enhance LG’s cybersecurity capabilities and accelerate its efforts to become an Innovation Partner for Future Mobility, the company said in its statement.
Remaining shares will be acquired in the near future with the final valuation and total investment amount to be confirmed at that time. On top of this initial investment, LG committed to a simple agreement for future equity (SAFE) to invest an additional USD 20 million in Cybellum upon conclusion of the trading process in the fourth quarter, the statement said.
Founded in 2016 in Tel Aviv, Cybellum is a leading vehicle cybersecurity company with about 50 employees and is currently collaborating with key industry players, successfully delivering its products to vehicle manufacturers and suppliers worldwide. In addition to Israel, Cybellum has operations in Japan, Germany and North America. Cybellum will remain an independent entity and brand, continuing to grow and support its customers and partners with the same commitment level and standards to which Cybellum customers have become accustomed, it added.
“We’re excited about this partnership with LG and the great return we’ve been able to deliver to our stakeholders,” said Slava Bronfman, CEO of Cybellum. “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.”
“It’s no secret the critical role software plays in the automotive industry and with it comes the need for effective cybersecurity solutions,” said Dr. Kim Jin-yong, president of the LG Electronics Vehicle component Solutions Company. “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.”
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