LG To Aquire Automotive Cybersecurity Firm Cybellum For $240 Million As It Expands Auto Footprint
LG may have hit the headlines for its role in Chevrolet’s Bolt EV fire debacle, but the Korean company’s electronics arm is keen to push ahead in the automotive sphere.
The company is acquiring Cybellum, an Israeli cybersecurity specialist that focuses on automotive vulnerabilities through connected vehicle services and hardware. Cybellum’s current clients include Jaguar Land Rover and Nissan, while partners include Harman, Toyota Tsusho, and PTC,
According to a report by TechCrunch, the deal is coming in several parts. LG will take a 64 percent stake in Cybellum, spending $140 million, before injecting a further $20 million “upon conclusion of the trading process in the fourth quarter.” The remaining shares will be purchased in the future, with values reassessed at the time, but if they remain what they are, the deal could be worth as much as $240 million.
Read: LG Chem WIth GM To Recycle Ultium Battery Cell Manufacturing Waste
The Korean electronics manufacturer has been closely associated with automotive hardware. LG Chem has been known for its advances in battery technology — issues with Chevrolet’s Bolt aside, they remain a crucial part of GM’s electric targets. They also supply Tesla, among others.
Partnership With Magna Too
LG has also formed a partnership with Austra’s Magna. The e-Powertrain joint venture is worth $1 billion as it unifies electric motors, inverters, and onboard chargers into a single e-axle. Apple was reportedly considering the JV as they continue to explore their options in the automotive space.
But the investment in the Tel Aviv-based company signifies LG’s broader ambitions for the automotive space, as it moves into providing software solutions as well as hardware options.
Cybersecurity and automobiles are becoming deeply intertwined, as the increase in connected services yields a more significant threat from malicious attacks.
China’s well-documented concerns over foreign vehicles and cybersecurity promoted the nation to mandate that all data gathered by locally-used cars be stored at data centers within the country. China has gone on to develop advanced machines that will be able to track data sent overseas by vehicles driven on its streets.
Gloss