LG is acquiring automotive cybersecurity startup Cybellum in a $240M deal
LG Electronics, the Korean tech giant that once was a leading player in mobile phones but is now winding down that business, is making an acquisition that points to its ambitions in another, emerging area: next-generation automotive hardware and services. Today the company announced that it will be snapping up Cybellum, an Israeli automotive cybersecurity specialist that detects and assesses vulnerabilities in connected vehicle services and hardware by way of a “digital twin” approach.
Initially, it is taking a 64% stake in Cybellum for $140 million, and it will contribute a further $20 million in the form of a simple agreement for future equity (SAFE) note, “upon conclusion of the trading process in the fourth quarter.” The remaining shares will then be acquired the “near future” (no specified date), which is also when the final valuation and investment will be confirmed.
As it stands now, if the valuation remains consistent, the deal in total will be worth some $240 million (market forces or the company’s own business funnel could impact this).
