Tech

LG takes over automotive security specialist Cybellum for 240 million

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The Korean electronics group LG Electronics wants to buy the Israeli security company Cybellum, which specializes in tracking down security problems in automotive software and vehicle hardware and assessing security risks. LG announced on Thursday. The takeover deal is worth around $ 240 million in its entirety. With the acquisition of Cybellum, LG confirms that it intends to expand its commitment to automotive hardware and services.

The takeover should take place in several steps, as can be seen from a communication from LG. Accordingly, the group initially wants to buy 64 percent of the Cybellum company shares for $ 140 million. Another 20 million should flow in the form of an equity bond. This should take place in the fourth quarter “after the trading process has been concluded”. The remaining company shares are to be acquired in the “near future”. LG does not give an exact date for this, but wants to wait until the company valuation has been finalized. So far, LG is assuming a total of around $ 240 million.

Cybellum was founded in Tel Aviv in 2016 and has offices in North America, Japan and Germany. According to LG, 50 employees are currently working for the company. Cybellum works with various actors in the automotive industry. The company’s focus is on ensuring the safety of vehicles that will be more networked in the future. LG wants to get involved in this promising market and become an important player in the automotive safety industry. However, LG does not want to shake the independence of Cybellum, the company and the brand are to be retained.

Cybellum’s core product is the Cyber ​​Digital Twins platform. It makes it possible to find potentially exploitable risks in the vehicle software without having to access the source code, as it is called. The system assesses the weak points and issues recommendations for solving the risks.

In recent years, LG has placed a focus on the automotive sector and made appropriate strategic acquisitions. In 2018, LG bought the Austrian ZKW Group, which manufactures lighting systems and vehicle electronics for cars, trucks and motorcycles. ZKW is recognized worldwide as a leading supplier of lighting systems for automobiles.

In addition, LG entered into a joint venture with the third largest automotive supplier Magna International in July 2021 and founded LG Magna e-Powertrain. The company develops components for electric-electric vehicles such as motors, inverters and on-board charging technology as well as complete electric drive systems. LG Magna e-Powertrain is also developing the appropriate operating and control software for this purpose. LG Magna was also discussed as a manufacturer of Apple’s electric car.


(olb)

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