Cybellum

Cybellum - the company created a digital twin system, an accurate scheme of all components of the car for assessing safety. The platform helps to quickly find vulnerabilities to prevent cyber attacks without loading the real machine.

History

2021: LG Electronics bought Cybellum for $240 million

On September 23, 2021, LG Electronics announced the acquisition of Cybellum. The transaction includes several stages. First, LG will buy a 64% stake in Cybellum for $140 million, and the company will contribute another $20 million in the form of a simple agreement on future equity (SAFE) after the end of trading in the fourth quarter of 2021. As of September 24, 2021, if the estimate remains unchanged, the total amount of the transaction will be about $240 million, but market forces or their own may affect this figure.

LG said that the main interest for the company is the Cyber Digital Twins platform developed by Cybellum, which allows you to inspect the software components of on-board systems for vulnerabilities without direct access to their source code.^[1] was introduced in February 2021.

LG bought a developer of cyber defense software for cars

It is no secret what important role software plays in the automotive industry and with it there is a need for effective cybersecurity solutions. This latest deal will further strengthen LG's solid foundation in cybersecurity, which will allow us to be even more prepared for the era of connected cars, "said Kim Jin Yong, president of LG Electronics, in a statement.

Cybellum's approach is to create a so-called digital twin, a system also used in the world of corporate IT and healthcare, as well as to monitor this system as a way to get a complete picture for identifying and assessing threats. This is one way to overcome fragmentation between individual components, allowing you to track events in real time without loading the systems of the car itself.

Cybellum technology and its acquisition by LG highlight some important trends in the world of connected cars and cybersecurity. The company, as an existing player in the market with ambitions to expand its position, makes investments both in its future business and to meet the wider need for services in the industry. The first integrations between the two companies will appear in 2022.^[2]

Code security of software components is one of the most important problems in the production of cars with advanced on-board systems, and, accordingly, any developments that improve security are especially in demand, "said Anastasia Melnikova, an information security expert at SEC Consult Services. - LG Electronics only recently began to enter the market near automotive technologies, and the current acquisition is obviously intended to emphasize the seriousness of intentions. The development of Cybellum is extremely relevant for car manufacturers and their software components. In turn, the brand and investments from LG, obviously, should contribute to its promotion and, as a result, to the increase in the safety of the software components of the cars of the future.

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