LG prepares for the battle to come in the automotive sector: it buys Cybellum, a cybersecurity company for cars, for $ 240M
Cybersecurity is on the mind of all car manufacturers. Such is the case, that from 2022 those cars that do not have a cybersecurity certificate will not be able to be marketed in the European Union. Unfortunately, the software for many car brands is still far from desirable.
After leaving the mobile sector, the automotive sector is being one of the big bets of the South Korean giant LG Electronics. Today he announces an important movement with the purchase of Cybellum, an Israeli company specializing in cybersecurity for connected vehicles.
LG moves token for the battlefield that lies ahead
The purchase is valued at a total of 240 million dollars, as LG explains. Initially, an amount of 140 million dollars will be paid for 64% of the company and an additional 20 million will be contributed by the end of the year. In the “near future”, LG will acquire the remaining shares until the announced valuation is reached.
Cybellum is a company that promises to detect and assess vulnerabilities in connected vehicle hardware and services. And it does so with an original “digital twin” approach.
As the company itself describes, the platform allows mapping in search of vulnerabilities “under the hood.” Cybellum Identify each component of the vehicle and create an identical digital replica to work with. This includes a “complete list of open source, proprietary and commercial software, operating systems, hardware architectures, and any cryptographic measures that vendors may have used.”
Founded in 2016, Cybellum currently employs more than 50 workers and collaborates with North American, Japanese and German companies among which we can find Land Rover, Nissan, Harman or Renault.
It is LG’s first investment in the Israeli ecosystem, with the intention of “ensuring growth in the automotive industry and delivering more value in areas such as design, operations development and software optimization and security.” In an equivalent direction, LG bought the ZKW group in 2018 and this summer partnered with Magna for the creation of electric platforms for electric cars.
According to The Korea Times, it was precisely the collaboration between LG and Magna that would take care of the rumored Apple Car.
The cybersecurity company will maintain its independence for the time being and will continue to collaborate with other manufacturers, Slava Bronfman, founder of Cybellum, explains to TechCrunch. It will do so under the aegis of an LG Electronics that has decided to make a move and invest a significant amount of money in one of the issues that is likely to be repeated the most in the automotive field in the coming years.
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