LG Electronics has acquired Israeli automotive cybersecurity startup Cybellum, adding a new boost to its ever-growing automotive electronics business.

The South Korean electronics maker said on Thursday it signed a deal with the Tel Aviv-based startup to acquire 63.9 percent of its shares. It will acquire additional Cybellum shares by the year’s end, with the final valuation and investment to be confirmed then, the company said.

Cybellum’s corporate value is estimated to be $140 million.

LG Electronics’ stake in Cybellum will further increase as it is set to contribute a further $20 million in a separate deal for future equity of Cybellum, which will be converted to new shares between late next year and the first half of 2023.

Cybellum founded in 2016 has developed its own multi-platform analysis tool that can analyze various software programs. Cybellum has a unique solution capability to check for vulnerabilities related to automotive cybersecurity, LG Electronics said.

LG Electronics said the acquisition aims to beef up the security systems on its automotive offerings in the fields of infotainment and telematics while security in the automotive industry has been increasingly important as more vehicles connect to networks.

Cybellum will continue to run its organization independently and strengthen cooperation with its existing finished car partners, LG Electronics said.

With the latest addition, the Korean tech giant is aggressively expanding its new growth engine automotive electronics business.

In 2018, LG Electronics acquired Austria-based automotive lighting and headlight systems provider ZKW Group in a LG’s largest acquisition deal. Later its headlight business was integrated into ZKW. In July 2021, the Korean firm signed an agreement with Magna International Inc. to set up a joint venture called LG Magna e-Powertrain.

“This latest deal will further strengthen LG’s solid foundation in cybersecurity, enabling us to be even more prepared for the era of connected cars,” said Kim Jin-yong, president of the LG Electronics’ vehicle component solution division.

By Park Jae-young and Minu Kim

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