LG Acquires Control of Israeli Startup Cybellum
LG acquires control of Israeli startup Cybellum The startup provides solutions for assessing the chances of cyber security in the automotive world
The acquisition will allow LG to continue to develop safer automation software, upgrade the company’s automotive components segment and allow Cybellum to expand with its security solutions for international customers
LG announced today that the company’s board of directors has approved the acquisition of the Israeli startup Cybellum, a leading provider of solutions for assessing cyber security risks in the automotive world. Following the acquisition, LG will hold 64% of the company worth $ 140 million, with the remaining shares to be purchased later (the final valuation and the final investment amount will be announced at the same time). This strategic move will allow LG to upgrade its cyber security capabilities and accelerate its efforts to become an innovative partner in the world of future transportation. In addition to the initial investment, LG undertook in the Simple Agreement for Future Equity (SAFE) to invest another $ 20 million in Cybellum upon completion of trading in the fourth quarter.
Founded in 2016 in Tel Aviv, Cybellum is one of the leaders in the field of cyber security in the automotive world, with more than 50 employees and collaborations with senior players in the field. Cybellum, which operates in Israel, Japan, Germany and North America, will remain an independent company and will continue to grow and support its customers at the same level of commitment and standards to which they have become accustomed. Cybellum will enable LG to advance a growth engine in the growing field of cyber security solutions in the automotive world, and provide added value in key areas such as parts design, development and operation.
One of Cybellum’s leading cyber security solutions in vehicles is the Cyber Digital Twins Platform. The advanced platform produces a detailed representation of the software components in the vehicle without the need to access its source code, thus exposing the problematic cyber security risks. The platform relies on real-time threat intelligence to test vulnerabilities and provide a full assessment of the dangers and recommended solutions.
This is the first acquisition of LG, the South Korean technology giant, in Israel and in the field of cyber security. This investment highlights the importance of this growing category and the key role it takes in LG’s strategy to strengthen its business portfolio through acquisitions and collaborations, with a strong emphasis on the auto parts world. In 2018, LG acquired the Austrian ZKW Group, a leading company in the car lighting market. Last July, LG launched its joint venture with Magna International, the third largest component supplier in the world, called the LG magna e-Powertrain. The initiative increases competition and the future potential growth of the two partner companies.
“We are excited about the collaboration with LG and the great return it will provide to our stakeholders,” said Slava Bronfman, CEO of Cybellum. “Cybellum has developed the most comprehensive cyber security management solution in the automotive industry, and the collaboration with LG will enable us to accelerate the realization of our vision. We expect to grow significantly in the near future. ”
“It’s no secret that software is a critical part of the automotive industry, so effective cyber security solutions are needed,” said Dr. Kin Jin-yong, president of LG Electronics Vehicle component solutions company. “This deal will strengthen our solid foundation in the worlds of cyber security, which will allow us to be even more prepared for a future where cars will be linked to each other.”
Founded in 2013, LG Electronics Vehicle Component Company recorded sales of $ 5.18 billion in 2020, an increase of 6.1% over 2019. Through its recent investment in automotive cyber security, LG is committed to increasing the competitiveness of its information systems, vehicle propulsion systems and systems Lighting – The three pillars of the world of components industry.