KPIT Technologies Strengthens Automotive Cybersecurity with Cymotive Acquisition

KPIT Technologies is set to acquire the entire stake in Cymotive Technologies, a cybersecurity firm based in Israel, for a sum of up to USD 120 million. The transaction will be completed in multiple phases, commencing with an initial USD 10 million preference capital investment, which should conclude by mid-2026, according to regulatory filings.

The final price in the acquisition may range from USD 60 to USD 120 million, contingent on Cymotive's revenue and EBIT figures. The initial investment is expected to translate into a 26% equity stake, contingent upon eight quarters of performance milestones. Full ownership is targeted for mid-2029.

Cymotive, headquartered in Tel Aviv, was founded by experts from Israel's cybersecurity sector in partnership with Volkswagen Group's CARIAD. The acquisition bolsters KPIT's automotive cybersecurity capabilities, promising enhanced integration for global OEMs and expanded revenue streams, offsetting recent declines in profit despite a revenue rise.

(With inputs from agencies.)