LG Electronics said on Thursday it has acquired Israeli automotive cybersecurity startup Cybellum.
Tel Aviv-based Cybellum was founded in 2016 and offers a risk assessment software that can scan software on vehicle components for vulnerabilities and risks.
The South Korean electronics maker signed a deal with the startup to acquire 63.9% of its shares. LG will also acquire additional shares of Cybellum by the year's end, with the amount to be finalised then.
LG has also signed an additional contract, worth $20 million, with the startup for future equity that will see the funds be converted to more shares from the end of 2022 to the first half of 2023.
Cybellum's current management team will continue to run the company independently and work with its existing automobile and component partners, LG said.
According to the South Korean company, the importance of security in the automotive industry has become more important as more vehicles connect to networks. Due to this, cybersecurity has become an important barometer for the quality of a vehicle's life cycle, along with design, development and driving capabilities, the company said.
Through Cybellum's solutions, LG will look to beef up the security systems on its automotive offerings in the areas of infotainment and telematics, the company said, to preempt security regulations in various countries and become a reliable partner to automobile manufacturers.
LG currently offers various software and components for vehicles. Its affiliate LG Display also supplies display panels to automobile companies.
In July, its joint venture with Magna International was formed, which aims to offer electric powertrain components and systems for cars.
In March, LG launched a joint venture called Alluto with Luxoft, a subsidiary of DXC Technology that offers connected car solutions based on the webOS Auto platform.