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

KPIT Technologies announced on Wednesday that it has entered into an agreement to acquire a majority stake in Cymotive, a move aimed at strengthening its capabilities in AI-led automotive cybersecurity.

The initial investment by KPIT will be $10 million in preference capital, subject to regulatory approvals and customary closing conditions. This investment will convert into equity upon achieving certain performance milestones. Following this, KPIT plans to acquire the remaining stake in phases, eventually owning 100% of Cymotive by mid-2029.

The total consideration for the acquisition is expected to range between $60 million and $120 million, depending on Cymotive’s revenue and earnings performance. The transaction will be executed in two tranches.

The acquisition aligns with KPIT’s strategy to expand its expertise in software-defined and AI-defined vehicles, where cybersecurity is becoming critical for safety, compliance, and consumer trust. Cymotive specializes in end-to-end vehicle cybersecurity solutions, including threat modeling, intrusion detection, and regulatory compliance.

Founded in collaboration with CARIAD, Cymotive has established itself as a trusted partner for global automotive companies, offering specialized solutions to address evolving cyber threats in connected vehicles.

KPIT said Cymotive’s capabilities will complement its existing portfolio, particularly when integrated with its mobility intelligence platform, Beacon. The combined offering is expected to help automotive manufacturers embed cybersecurity throughout the vehicle lifecycle—from design to deployment and operations.

Kishor Patil, CEO and Managing Director of KPIT Technologies, said the investment reflects the company’s long-term focus on AI-driven solutions for mobility. He emphasized that cybersecurity is now fundamental to how vehicles are designed and trusted.

CARIAD’s CFO and board member, Dr. Andre Stoffels, welcomed the move, stating that the partnership would accelerate the development of practical cybersecurity solutions for automakers.

Cymotive Chairman Yuval Diskin said joining KPIT would enable the company to scale its vision globally, combining Israeli cybersecurity expertise with KPIT’s automotive software strengths and global reach.

Cymotive will continue operating with its existing leadership and workforce while leveraging KPIT’s global delivery network and automotive domain expertise.