Seoul, Sep 24 (IANS) LG Electronics has signed a deal to acquire a stake in Israel-based automotive cybersecurity firm Cybellum in a move to strengthen its growing auto parts business.
The South Korean tech giant said it will purchase a 63.9 per cent stake in Cybellum and plans to jack up the stake further by the end of this year. The Israeli firm is valued at $140 million.
LG Electronics said details of its total investment in the company will be finalised by then.
The tech giant said it expects the investment to boost cybersecurity capabilities and increase competitiveness in its auto parts business, such as infotainment systems, reports Yonhap news agency.
The latest move comes as the South Korean home appliance maker has recently redoubled efforts in its auto parts business in light of growing demand for new vehicles that use connected technology and electric powertrains.
In 2018, LG Electronics acquired Austrian auto lighting company ZKW Group and set up a joint venture this year with Canadian auto parts maker Magna International Inc. to build electric vehicle powertrains.
Amid growing investment into its new auto business, LG Electronics decided to scrap its traditional mobile phone business in July after years of losses.