KPIT to acquire Israeli auto cybersecurity firm Cymotive for up to $120 million

In a significant move to enhance its automotive cybersecurity capabilities, KPIT Technologies has announced that it will acquire a majority stake in the Israeli firm Cymotive. This strategic partnership is designed to bolster KPIT's offerings in AI-driven solutions for the automotive sector. The initial phase of the acquisition involves a $10 million investment in preference capital, which is contingent upon obtaining regulatory approvals and fulfilling standard closing conditions. This initial investment is set to convert into equity based on the achievement of specific performance milestones. KPIT has plans to acquire the remaining shares in stages, aiming for full ownership of Cymotive by mid-2029. The total acquisition cost is projected to be between $60 million and $120 million, depending on Cymotive's revenue and earnings performance. This acquisition aligns with KPIT's vision of expanding its expertise in software-defined and AI-enhanced vehicles, a domain where cybersecurity has become increasingly vital for safety, compliance, and consumer confidence. Cymotive is well-regarded for its comprehensive vehicle cybersecurity solutions, which encompass threat modeling, intrusion detection, and adherence to regulatory standards. Founded through collaboration with CARIAD, Cymotive has built a reputation as a go-to partner for automotive companies worldwide, providing essential solutions to counteract the growing cyber threats faced by connected vehicles. KPIT believes that integrating Cymotive’s capabilities with its existing mobility intelligence platform, Beacon, will significantly enhance automotive manufacturers' ability to embed cybersecurity throughout the vehicle lifecycle—from design to deployment and ongoing operations. Kishor Patil, CEO and Managing Director of KPIT Technologies, remarked that this investment underscores the company's commitment to AI-centric mobility solutions, highlighting that cybersecurity is now a cornerstone of vehicle design and consumer trust. Dr. Andre Stoffels, CFO and board member of CARIAD, expressed enthusiasm for the collaboration, noting that it will expedite the development of effective cybersecurity solutions for car manufacturers. Cymotive’s Chairman, Yuval Diskin, stated that joining forces with KPIT would allow the company to expand its vision on a global scale, blending Israeli cybersecurity expertise with KPIT’s automotive software capabilities and worldwide reach. Cymotive will continue to operate under its current leadership and staff while benefiting from KPIT’s extensive global delivery network and industry knowledge.