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LG is set to acquire Cybellum, an Israeli vehicle cybersecurity risk assessment company.

The deal will see the South Korean technology giant assume a 64% stake in Cybellum, currently valued at $140 million. LG will also pump a further $20 million into the company once the deal is concluded.

Founded in 2016, the Tel Aviv-based Cybellum currently has around 50 employees and is “collaborating with key industry players” according to LG’s statement.

The company currently operates in Japan, Germany, and North America as well as its home market in Israel. Cybellum will remain an independent brand despite its new ownership.

“We’re excited about this partnership with LG and the great return we’ve been able to deliver to our stakeholders,” says Slava Bronfman, Cybellum’s CEO.

“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.”

“It’s no secret the critical role software plays in the automotive industry and with it comes the need for effective cybersecurity solutions,” says Dr. Kim Jin-yong, president of the LG Electronics Vehicle component Solutions Company.

“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.”

You might be forgiven for thinking that cars don’t need cybersecurity measures but, as the automotive world becomes more connected, the number of threats will increase.

As such, Cybellum offers a range of services included its ‘Cyber Digital Twin’ platform. Cyber Digital Twins create a detail representation of a vehicle’s software components without accessing the source code. This means it can expose any risks that could be exploited, without offering attackers access to actual car itself.

From there, Cybellum can offer a full assessment of any vulnerabilities that it might find and provide solutions for manufacturers in order to fix problems before they arise.

While this acquisition is LG’s first in the automotive cybersecurity world, the South Korean company is a growing name in the automotive world. In August 2018, LG acquired Austria’s ZKW Group, a leading player in the automotive lighting market. In July, LG launched a joint venture with Magna International, the world’s third largest auto supplier, to create LG Magna e-Powertrain, boosting the competitiveness and future growth potential of both partners.

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