Cybellum, and Israeli vehicle cybersecurity startup, has been bought out by Korea’s LG, one of the world’s top electronic appliance manufacturers. LG will acquire a 64% stake in Cybellum which LG says is valued at $140 million.
Remaining shares will be acquired in the near future with the final valuation and total investment amount to be confirmed at that time. On top of this initial investment, LG committed to a simple agreement for future equity (SAFE) to invest an additional USD 20 million in Cybellum upon conclusion of the trading process in the fourth quarter.
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Founded in 2016 CEO Slava Bronfman and CTO Michael Engstler, who both served in the elite Unit 81 of the Israeli military’s intelligence, Cybellum, has raised $15 million in total funding to date from investors including RSBG Ventures, Blumberg Capital, and Target Global. Cybellum provides automotive OEMs and suppliers with security needed to identify and remediate any risks, including those on the cloud, throughout the entire vehicle life cycle. The company has about 50 employees and is currently collaborating with key industry players. In addition to Israel, Cybellum has operations in Japan, Germany and North America. Cybellum will remain an independent entity and brand.
Cars are going automated. Soon you won’t need to ever drive your own car gain. But with automation comes the risk of hacking. And automated car systems work through cloud based systems. And cloud based systems require special security protections.
Startup Nation is known for its security companies. The Israel Defense Forces’ vaunted 8200 cyber security unit produces many new high tech security experts. With the Corona Virus forcing everyone to work from home, communicate through applications like Zoom and use all manner of software as a service programs on line security is more important than ever.
Also, hackers are not only motivated by money or politics. They often just like being malicious. So even small companies need to be on their guard and be sure to properly protect their systems.
And everything is going into the cloud these days.
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We are excited to partner with @LGElectronics!
Cybellum will retain its complete independence and will continue to offer full suite of products under our own brand.
Our dedication and commitment to our customers and partners will be assured.https://t.co/IwUIYb8WYx pic.twitter.com/sHZEUpASYc
— Cybellum (@Cybellum) September 23, 2021
“We’re excited about this partnership with LG and the great return we’ve been able to deliver to our stakeholders,” said Slava Bronfman, CEO of Cybellum. “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,” said 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.”
