On Thursday, an announcement from LG Electronics confirmed that it had acquired Cybellum, an automotive cybersecurity startup from Israel.
Based in Tel Aviv, Cybellum came into existence in 2016. It provides risk assessment tools that can detect vulnerabilities and hazards in software on automotive components.
The South Korean electronics manufacturer agreed to buy 63.9 percent of the startup’s stock. LG will also purchase more Cybellum shares before the end of the year, with the amount to be determined at that time.
LG has also agreed to a $20 million future equity contract with the firm, which will see the cash converted into more shares from the end of 2022 through the first half of 2023.
The South Korean manufacturer has clarified that the current management team of Cybellum will continue to run the firm independently and collaborate with its current automotive and component partners.
LG believes that the necessity of security in the automotive sector has grown with the increasing number of vehicles being connected to networks. As a result, cybersecurity, along with design, development, and driving skills, has become an essential gauge for a vehicle’s life cycle quality.
LG plans to use Cybellum’s solutions to strengthen the security systems of its automotive products in the fields of infotainment and telematics. This way, it’ll be able to avoid security regulations in various nations and become a trusted partner to automakers.
LG presently provides a variety of automotive software and components. LG Display, a subsidiary of LG Electronics, also provides display panels to vehicle manufacturers.