KPIT Technologies, a global leader in automotive software, has entered into an agreement to acquire a majority stake in Cymotive, an Israeli automotive cybersecurity firm. The deal, announced on Wednesday, May 6, 2026, could see the total consideration reach between $60 million and $120 million, contingent on Cymotive's future revenue and earnings performance.
The initial investment by KPIT will involve $10 million in preference capital, which will convert into equity once specific performance milestones are achieved. KPIT's long-term plan includes progressively acquiring the remaining stake, aiming for 100% ownership of Cymotive by mid-2029.
Enhancing Automotive Cybersecurity Expertise
This acquisition is a key component of KPIT's strategy to expand its expertise in the rapidly evolving landscape of software-defined and AI-defined vehicles. Cybersecurity has become paramount for vehicle safety, regulatory compliance, and maintaining consumer trust in connected cars.
Cymotive, co-founded by senior Israeli cybersecurity experts and CARIAD, the Volkswagen Group's automotive software company, specializes in end-to-end vehicle lifecycle cybersecurity. Its offerings include robust threat modeling, advanced intrusion detection systems, and solutions for regulatory compliance, making it a trusted partner for global automakers.
Strategic Integration and Future Vision
KPIT stated that Cymotive's specialized capabilities will significantly complement its existing portfolio, especially when integrated with its mobility intelligence platform, Beacon. The synergy is expected to enable automotive manufacturers to embed comprehensive cybersecurity measures throughout the entire vehicle lifecycle, from initial design and development to deployment and ongoing operations.
Kishor Patil, CEO and Managing Director of KPIT Technologies, emphasized the company's long-term commitment to AI-driven solutions for mobility. He highlighted that cybersecurity is now a fundamental aspect of vehicle design and public trust. Dr. Andre Stoffels, CFO and board member at CARIAD, welcomed the partnership, anticipating it will accelerate the development of practical cybersecurity solutions for the automotive industry.
Yuval Diskin, Chairman of Cymotive, expressed enthusiasm for joining KPIT, noting that the move would allow Cymotive to scale its vision globally. He underscored the blend of Israeli cybersecurity expertise with KPIT's extensive automotive software strengths and global delivery network. Cymotive will continue to operate with its current leadership and workforce, leveraging KPIT's broader resources for expanded reach.