Korean electronics giant LG has announced that it will acquire a 64 percent stake in cybersecurity startup Cybellum. Cybellum, founded in 2016, is a Tel Aviv-based company specializing in vehicle cybersecurity risk assessment. LG says the move will enhance its “cybersecurity capabilities and accelerate its efforts to become an innovation partner for future mobility.”
Cybellum, which LG values at approximately $140 million, is working with organizations in its native Israel and Japan, North America, and Germany. LG asserts in its statement that Cybellum will retain its ability to be an independent “entity and brand,” which is something that remains to be seen. LG says it specifically sought to acquire Cybellum because of its Cyber Digital Twins platform, which is able to provide threat updates in real-time without accessing the source code of a vehicle.
Speaking on the new partnership, Cybellum CEO Slava Bronfman said the following:
We’re excited about this partnership with LG and the great return we’ve been able to deliver to our stakeholders. 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.
Additionally, Dr. Kim Jin-yong, president of the LG Electronics Vehicle component Solutions Company, made the following comment on the company’s acquisition:
It’s no secret the critical role software plays in the automotive industry and with it comes the need for effective cybersecurity solutions. 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.
With the push for more IoT-connected vehicles and the testing of AI-driven cars, cybersecurity is more important than ever with regard to the automobile. Companies like Cybellum will likely be in great demand as time goes on, hence LG’s push to get ahead of the curve.
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