Strategic Move By LG Electronics, Acquired Israel’s Cybersecurity Platform Startup
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LG Electronics strengthened its component business for vehicle hardware and software by acquiring Israel’s cybersecurity platform developer Cybellum in a deal that would reach about $110 million. The home appliance maker regards cybersecurity as an important element in next-generation vehicles, evolving into complex systems connected with numerous components.
LG Electronics said it had signed a contract to secure a 63.9 percent stake worth $89.46 million in Cybellum. Additional shares would be acquired by the end of this year. In addition, the South Korean company signed a separate $20 million investment agreement that would be converted into stocks.
Along with Cybellum, which develops a cybersecurity platform designed to provide software risk assessment by detecting vulnerabilities automatically without source code, LG Electronics aims to raise the cybersecurity competitiveness of its vehicle component business to the world’s highest level.
LG Electronics has beefed up capabilities to manufacture infotainment systems and powertrain parts for carmakers. In December 2020, LG Electronics and Canada’s mobility technology company Magna International agreed to establish a joint venture and manufacture electric motors (e-motors), inverters, and onboard chargers for electric vehicles, along with electric powertrain systems.
LG had already closed their mobile business in July this year, by this strategic move we can say there is something big to come from the South Korean giant.
Suprotik Sinha is the Content Writer with Synkrama Technologies. He writes about technologies and startups in the global enterprise space. An animal lover, Suprotik, is a postgraduate from Symbiosis Institute of Mass Communication (SIMC) Pune. He carries 6+ years of experience in Content Writing, and he also worked in mainstream broadcast media, where he worked as a Journalist with Ibn7 ( now known as News18 India) and Zee Media in Mumbai.