KPIT to acquire majority stake Israeli cyber security company Cymotive

The acquisition will occur in two tranches and is contingent upon revenue and EBIT numbers achieved by Cymotive. The completion of the deal is also subject to the achievement of specific milestones.

Initially, KPIT will invest $10 million in preference capital, which will convert to equity capital once Cymotive reaches certain performance milestones. Following this conversion, KPIT will acquire the remaining stake to take a 100% ownership of Cymotive, with completion expected by mid-2029.

KPIT on the acquisition

KPIT said this acquisition will enhance its strategic focus on developing deep, future-ready competencies necessary to deliver comprehensive software strategies and execution for mobility OEMs globally. As vehicles undergo a rapid transformation towards being software-defined (SDV) and AI-defined (AIDV), cybersecurity would become essential for safety, compliance, trust, and long-term differentiation.

Founded by senior Israeli cybersecurity leaders and CARIAD, the automotive software company of the Volkswagen Group, Cymotive specialises in end-to-end vehicle-lifecycle cybersecurity, including secure architecture, threat modelling, intrusion detection, continuous monitoring, and regulatory compliance. Cymotive has been a cybersecurity partner to leading global automotive companies, providing expertise in addressing automotive-specific cyber threats.

With this acquisition, Cymotive’s solutions will significantly complement KPIT’s existing portfolio. Along with Beacon, KPIT’s mobility intelligence product, AI-driven cybersecurity will enable OEMs to adopt an integrated approach—embedding cybersecurity products into vehicle platforms from design through production and operations.

What did Kishor Patil say?

Kishor Patil, CEO and Managing Director of KPIT Technologies, remarked, “Mobility 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 with KPIT’s long-term strategy of creating differentiated, AI-led value for global OEMs.

Cymotive brings deep, proven automotive cybersecurity expertise, and together we can embed security into the foundation of mobility software at scale, across programs, and throughout the vehicle lifecycle—creating meaningful value for the entire mobility ecosystem.”

He added that this investment also enhances KPIT’s product strategy and creates opportunities to develop platforms and cybersecurity products that will contribute to product and licensing-led revenue streams, alongside KPIT’s established engineering engagements.

Yuval Diskin, Chairman of Cymotive, expressed, “Cymotive was founded to leverage Israel’s world-class cybersecurity expertise to protect the rapidly evolving field of software-defined mobility. Joining the KPIT group allows us to scale this vision globally, benefiting from KPIT’s deep mobility expertise, global reach, and strong OEM relationships.

Together, we will deliver end-to-end, AI-driven solutions and products that enable the mobility ecosystem to innovate while staying ahead of an increasingly complex cyber threat landscape. This strategic alignment positions us to build the world’s leading cybersecurity company within the mobility domain.”

Andre Stoffels, CFO and Board Member of CARIAD, stated, “KPIT has consistently demonstrated a deep understanding of automotive software and the ability to deliver at scale. Cymotive, co-founded by CARIAD, the automotive software company of the Volkswagen Group, and senior security leaders in Israel. will now be part of the KPIT family, Cymotive will accelerate the development of the real-world cybersecurity solutions that car manufacturers need today.”

Cymotive will continue to operate with its existing leadership team, talent pool, and customer relationships while leveraging KPIT’s global delivery footprint, domain scale, and long-standing presence across automotive programs worldwide.