International. The board of directors of Korean electronics company LG Electronics has approved the acquisition of Cybellum, an Israel-based vehicle cybersecurity startup.
In announcing the deal, LG said it would take a stake of about 64% in Cybellum, which was valued at $140 million. The rest of the shares will be acquired soon, at which time the final valuation and the total amount of the investment will be confirmed.
LG called the acquisition "a strategic move that will enhance LG's cybersecurity capabilities and accelerate its efforts to become an innovation partner for future mobility."
Along with its investment, LG committed to a simple future capital agreement (SAFE) whereby an additional $20 million will be invested in Cybellum in the fourth quarter of 2021 upon completion of the negotiation process.
Cybellum was founded in 2016 in Tel Aviv by CEO Slava Bronfman and CTO Michael Engstler, who served in Israel's elite military intelligence group, Unit 81.
"We are excited about this partnership with LG and the great performance we have been able to deliver to our shareholders," said Bronfman. "Cybellum has developed the industry's most comprehensive product security management offering, and joining forces with LG will allow us to further accelerate the realization of our vision. We expect to grow significantly in the near future."
35 of Cybellum's 50 employees are based at the company's research and development center in Tel Aviv. Since its inception, the company has received investments from RSBG Ventures, Blumberg Capital and Target Global among other sources.
Working in partnership with companies such as Jaguar and Nissan, Cybellum provides automotive original equipment manufacturers and suppliers (OEMs) with an agentless solution that can scan embedded software components and detect cyber vulnerabilities. The solution can also remedy risks at scale throughout a vehicle's lifecycle.
"It's no secret the pivotal role software plays in the automotive industry and with it comes the need for effective cybersecurity solutions," said Dr. Kim Jin-yong, president of LG Electronics Vehicle Component Solutions Company.
"This latest agreement will strengthen LG's foundation in cybersecurity, allowing us to be even more prepared for the era of connected cars."
