LG acquires Cybellum, an Israeli automotive startup

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LG Electronics announced on Thursday that it acquired an Israeli automotive cybersecurity company named Cybellum. The Tel Aviv-based company was founded in 2016 and offers risk assessment software for scanning software in-vehicle components for risks and flaws.

The South Korean electronics giant signed a deal with the startup, to acquire 63.9% of its shares. LG will also buy additional shares of Cybellum before the end of the year, with the final amount to be announced then.

LG also signed an additional $20-million contract with the startup, for future equity that will see the funds converted to shares from the end of next year to the first half of 2023.

What LG wants with a cybersecurity company

Cybellum’s current management team will stay on and run the company as an independent entity while working with existing LG components and automobile partners.

The South Korean electronics maker spoke about the importance of security in the automotive industry and its growing importance as vehicles start to connect in a network. Due to the developments, cybersecurity has become important in measuring a vehicle’s life cycle, along with development, design, and driving capabilities.

Through Cybellum’s solutions, LG looks to augment its security systems on its automotive offerings, especially in telematics and infotainment.

LG’s stake in the automotive market

LG plans to use Cybellum’s capabilities to preempt security regulations in various countries while positioning itself as a reliable partner for automobile makers.

LG currently offers various software and components for vehicles. LG Display, its affiliate, also supplies display panels for automobile companies. In July, its joint venture with Magna International was announced, to offer electric powertrain components and systems for cars.

In March, the company launched another joint venture called Alluto with Luxoft, a subsidiary of DXC Technology, to offer connected car solutions with the webOS Auto platform as a foundation.