LG Electronics has acquired Israeli automotive cybersecurity startup Cybellum. Cybellum, located near Tel Aviv, launched a risk assessment program in 2016 that can scan software on car components for vulnerabilities and hazards. The South Korean electronics manufacturer agreed to buy 63.9 percent of the startup’s stock. LG will also purchase more Cybellum shares before the end of the year, with the amount to be determined at that time.
LG has also agreed to a $20 million future equity contract with the firm, which will see the cash converted into more shares from the end of 2022 through the first half of 2023. According to LG, Cybellum’s current management team will continue to run the firm independently and collaborate with its current automotive and component partners. The necessity of security in the automobile sector has grown in importance, according to the South Korean corporation, as more vehicles link to networks. As a result, cybersecurity, along with design, development, and driving skills, has become an essential gauge for the quality of a vehicle’s life cycle, according to the firm.
LG plans to use Cybellum’s solutions to strengthen up the security systems on its vehicle products in the fields of infotainment and telematics, according to the firm, in order to avoid security laws in various nations and become a trusted partner to automakers.