LG Electronics said it had agreed to acquire a majority stake in Israel based automotive cybersecurity firm Cybellum, as it looks to further strengthen its automotive electronics business.
The South Korean supplier said it planned to initially acquire a 63.9% stake in Cybellum in a deal that values the company at US$140m, with a view to increasing its stake further by the end of this year.
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The deal is expected to strengthen LG’s cybersecurity capabilities and increase its competitiveness in the automotive electronics business, particularly in infotainment systems.
LG Electronics has identified the global automotive sector as a new growth area, targeting rising demand for electric vehicles (EVs), connected onboard systems and more advanced infotainment equipment.
Since the beginning of the year it has been restructuring its global automotive systems production network to better focus on global growth opportunity. At the same time, it decided to exit its mobile phone business after years of losses.
Earlier this month the company gained recognition as an international certification institute for testing the functional safety of automotive software which is recognised in 70 countries including the US and Japan.
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By GlobalDataEarlier this year LG Electronics announced a joint venture with Canada’s Magna International which will pool together their respective EV powertrains electronics operations.
Before that it acquired Austrian automotive lighting manufacturer ZKW Group.
