이 기사는 2021년 09월 28일 08:02 thebell 에 표출된 기사입니다.

LG Electronics is set to acquire Israeli automotive cybersecurity startup Cybellum as the race to invest in automotive software technology heats up among the country’s largest conglomerates.

The South Korean electronics maker announced earlier Thursday that it signed a share purchase agreement to buy a 63.9% stake in Cybellum, which is valued at $140 million. It will invest an additional $20 million in the company in a simple agreement for future equity.

Tel Aviv-based Cybellum is an automotive cybersecurity company with 50 employees. It offers software solutions that can examine software programs and components used in vehicles for vulnerabilities and risks.

The deal comes at a time when threats to automotive cybersecurity are increasing. Weak cybersecurity could make hackers target and access automotive software functions such as locking and unlocking doors, remote start and navigation, potentially putting drivers in danger. Last year a security researcher showed that Tesla’s Model X was able to be hacked in just a few minutes.

The deal is also in line with global trends as governments in the US and European countries continue to strengthen regulations on automotive cybersecurity. In the European Union, cybersecurity regulations adopted by the United Nations Economic Commission for Europe will be mandatory for all new vehicle types from July 2022.

Other major South Korean conglomerates are also ramping up investments in this space. Israeli automotive cybersecurity company TowerSec was merged into Harman International Industries, which was acquired by Samsung Electronics in 2017.

Hyundai Motor Group is targeting to complete the development of technology that prevents long distance hacking in the first half of next year. Hyundai AutoEver, the conglomerate’s software arm, is also developing a platform for Hyundai’s own connected car system Bluelink.

Cybellum’s current management will remain with the company after the deal. The decision was made to maintain the company’s independence and network of relationships within the industry. Cybellum counts global automakers and electric vehicle makers such as the Renault-Nissan-Mitsubishi alliance, Jaguar Land Rover and Canoo among its customers.

The deal will likely to create synergies with LG Electronics’ other automotive software businesses and help increase the value of the South Korean company, industry experts said. Some noted the deal could be aimed at forming potential partnerships with global tech giants such as Apple, which is developing its own autonomous electric car.

“The deal is a win-win for both parties and will help enhance our cybersecurity technology as we continue to prepare for the era of connected cars,” said a LG Electronics official. (Reporting by Hyun-ji Sohn)