LG Electronics’ (LG) board of directors has approved the acquisition of Cybellum, a leading vehicle cybersecurity risk assessment solution provider.
The deal allows LG to assume an approximate 64 percent stake in the tech company valued at USD 140 million, a strategic move that will enhance LG’s cybersecurity capabilities and accelerate its efforts to become an Innovation Partner for Future Mobility.
Remaining shares will be acquired in the near future with the final valuation and total investment amount to be confirmed at that time. On top of this initial investment, LG committed to a simple agreement for future equity (SAFE) to invest an additional USD 20 million in Cybellum upon conclusion of the trading process in the fourth quarter.
Founded in 2016, Cybellum is a leading vehicle cybersecurity company with about 50 employees and is currently collaborating with key industry players, successfully delivering its products to vehicle manufacturers and suppliers worldwide.
With the number and type of cybersecurity threats on the rise and the global automobile industry transitioning to the connected car era where secure connectivity is essential, the need for better vehicle cybersecurity that meets international standards has never been greater. Vehicle cybersecurity will only become more important over time as cars evolve into organically connected systems with complex interrelationships between their various components.
Cybellum will enable LG to preemptively secure a sustainable growth engine in the rapidly growing automotive cybersecurity industry and deliver more value in key areas such as parts design, development and operation by optimizing software security.
Slava Bronfman, CEO of Cybellum
Cybellum has developed the most comprehensive product security management offering in the industry and joining forces with LG will enable us to further accelerate the realization of our vision. We expect to grow significantly in the near future.
Dr. Kim Jin-yong, President of the LG Electronics Vehicle component Solutions Company
It’s no secret the critical role software plays in the automotive industry and with it comes the need for effective cybersecurity solutions.
