KPIT Technologies announced that it has entered into an agreement to acquire a majority stake (subject to achievement of specific milestones) in Israe-based automotive cybersecurity company Cymotive.
The initial investment by KPIT (subject to customary closing conditions and regulatory approvals) would be $10 Mn in Preference Capital which would get converted to Equity Capital, basis achievement of certain performance milestones by Cymotive. Post such conversion, KPIT would acquire the balance stake to own 100% in Cymotive which is expected to be completed by mid-2029. The total consideration for acquisition of 100% stake would happen in two tranches and is dependent upon the actual revenue and EBIT numbers achieved by Cymotive. Currently the total consideration payable by KPIT is expected to be between $60 Mn to $120 Mn (including upfront $ 10 Mn investment). Â
This acquisition shall strengthen KPITâs strategic focus on building deep, futureââŹâready competencies required to deliver comprehensive software strategy and execution for mobility OEMs globally. As vehicles continue their rapid transformation towards being softwareââŹâdefined (SDV) & AI-defined (AIDV), cybersecurity is a core enabler of safety, compliance, trust, and longââŹâterm differentiation.
Founded jointly by senior Israeli cybersecurity leaders and CARIAD, the automotive software company of the Volkswagen Group, Cymotive specializes in endââŹâtoââŹâend vehicle lifecycle cybersecurity, spanning secure architecture, threat modeling, intrusion detection, continuous monitoring, and regulatory / homologation compliance. Cymotive has been a trusted cybersecurity partner to leading global automotive players and brings strong domain depth in addressing automotiveââŹâspecific cyber threats.
With this acquisition, Cymotiveâs solutions will form a strong and complementary addition to KPITâs existing portfolio. Coupled with Beacon â KPITs Mobility Intelligence Product , AI led cybersecurity will enable OEMs to adopt an integrated approachâembedding cybersecurity products into vehicle platforms from design through production and operations.
Kishor Patil, CEO & Managing Director, KPIT Technologies said, âMobility continues to be transformed by Software and AI defined vehicles. Cybersecurity is now fundamental to how vehicles are designed, built, and trusted. Our investment in Cymotive aligns directly with KPITâs longââŹâterm strategy of creating differentiated, AI solutionsââŹâled value for global OEMs. Cymotive brings deep, proven automotive cybersecurity expertise, and together we can integrate security into the foundation of mobility softwareâat scale, across programs, and across the vehicle lifecycleâcreating meaningful value for the entire mobility ecosystem.â
This investment also strengthens KPITâs solutions and products strategy, enhancing opportunities to develop platforms and cybersecurity products. It will start adding to product and licensingââŹâled revenue streams, in addition to KPITâs established engineering engagements.
Yuval Diskin, Chairman, Cymotive said, âCymotive was founded to bring Israelâs world class cybersecurity expertise, together with a culture of creativity and innovation, to protect the rapidly evolving world of software defined mobility. Joining the KPIT group, allows us to scale this vision globally. KPITâs deep mobility expertise, global reach, and strong OEM relationships significantly strengthen Cymotiveâs automotive cybersecurity capabilities. Together, we are uniquely positioned to deliver end to end, AI driven solutions and products that enable the mobility ecosystem to innovate with confidence, while staying ahead of an increasingly complex cyber threat landscape. This strategic alignment positions us to build the worldâs leading cybersecurity company for the mobility domain".
Cymotive will continue to operate with its existing leadership team, talent base, and customer relationships, while leveraging KPITâs global delivery footprint, domain scale, and longââŹâstanding presence across automotive programs worldwide.
