LG buys into Israeli automotive security company
LG Electronics purchased a majority stake in Cybellum, an Israeli automotive security company, part of its move into automobile parts and technologies.
The electronics maker agreed to acquire a 63.9 percent stake in Cybellum, a company valued at $140 million, for a price not yet determined, according to a statement released by the company Tuesday.
Still, a spokesperson for LG Electronics told the Korea JoongAng Daily that the deal was estimated to be around $90 million.
“As the sales agreement will be finalized by the end of this year, the exact price will be determined around that time,” the spokesperson said.
In addition to that purchase, LG Electronics agreed to invest $20 million in the Israeli company to acquire an unidentified number of shares in the future.
LG said the conversion of the investment into equity could take place at the end of 2022 or in the first half of 2023, and will increase its stake in Cybellum.
Founded in 2016 in Tel Aviv, Cybellum specializes in developing cybersecurity software used in automobiles, especially connected vehicles. With around 50 employees, it operates in Japan, Germany and North America.
LG Electronics hopes a prowess in cybersecurity software will boost its competitiveness in the automotive business.
“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 division. “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.”
This is the latest in a series of deals aimed at boosting LG's standing in the automotive industry.
It formed a joint venture named LG Magna e-Powertrain in July with Canadian auto parts company Magna International to become a major electric vehicle parts supplier.
LG spun off its EV parts division into a new entity while its infotainment business will remain in the company.
The company also acquired Austria’s ZKW Group, an automotive lighting maker, in 2018.
BY PARK EUN-JEE [firstname.lastname@example.org]
with the Korea JoongAng Daily
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