Already one of the largest makers of electric vehicle batteries, LG said it is taking a 64% stake in Tel Aviv-based Cybellum for $140 million.
in 2016 by Michael Engstler and Slava Bronfman, both former software engineers with the Israel Defense Forces.
“It’s no secret the critical role software plays in the automotive industry and with it comes the need for effective cybersecurity solutions,” said Kim Jin-yong, president of LG Electronics Vehicle Component Solutions Company, in a. “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.”
LG will acquire the remaining shares of Cybellum in the near future, according to the company. On top of the $140 million investment, LG will contribute a further $20 million in the form of a simple agreement for future equity, a type of financing where the valuation isn’t set yet, in the fourth quarter.
“LG Group has been trying to get a bigger foothold in the auto industry for the past decade,” said Sam Abuelsamid, principal research analyst based in Michigan at research firm Guidehouse Insights. “With software and connectivity accounting [for] more value in the car every year, it makes sense for LG to strengthen its cybersecurity capabilities.”
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