LG Electronics acquires automotive cybersecurity firm Cybellum
Secures 63.9% stake
LG Electronics said on Thursday that it has acquired Israel-based cybersecurity startup Cybellum.
The South Korean tech giant acquired 63.9% of the shares in the startup and plans to buy additional shares within 2021.
It also signed an agreement to acquire future equity for US$20 million, in which LG will secure more shares in Cybellum from the end of 2022 to the first half of 2023.
Cybellum, founded in 2016, owns technology in risk assessment software that looks for security vulnerabilities of software used on vehicle components.
It can use this without the source code of these software and allows automobile companies to manage potential risks in their vehicles, LG said.
Starting in July next year, cars with electronic control units must receive authentication in cybersecurity (UNECE WP.29 R155). An LG spokesperson said its acquisition of Cybellum will allow them to prepare for this requirement.
Meanwhile, LG Electronics bought car lamp first ZKW back in August 2018. In July, it formed a joint venture with Magna International. The venture will supply electric powertrain components to automobile companies.