Automotive and mobility-focussed technology company KPIT Technologies has entered into an agreement to acquire a majority stake in Israel-based automotive cybersecurity firm Cymotive, as it looks to deepen its capabilities in AI-led vehicle software and security.
The company will initially invest $10 million (Rs 94.5 crore) in preference capital, which will be converted into equity upon the achievement of certain performance milestones.
KPIT expects to acquire 100% ownership in Cymotive in phases by mid-2029, with the total deal value estimated between $60 million and $120 million, depending on revenue and profitability targets.
Shares of KPIT ended 2.98% lower at Rs 749.45 apiece on the NSE on Wednesday.
Cymotive, founded by cybersecurity experts in collaboration with CARIAD, the software arm of the Volkswagen Group, specialises in end-to-end automotive cybersecurity, including threat detection, secure architecture, and regulatory compliance. It has worked with several global automotive players.
The company will continue to operate independently with its existing leadership and customer relationships, while leveraging KPIT’s global scale and delivery capabilities.
KPIT said the acquisition aligns with its strategy to strengthen its position in software-defined and AI-defined vehicles, where cybersecurity has become a core component of safety and compliance.
The deal will complement its existing mobility software portfolio and help integrate cybersecurity solutions across the vehicle lifecycle, from design to operations. The move is also expected to support KPIT’s push towards product- and licensing-led revenue streams, in addition to its engineering services business.
“The investment in Cymotive aligns directly with KPIT’s long‑term strategy of creating differentiated, AI solutions‑led value for global OEMs,” said Kishor Patil, chief executive officer and managing director of KPIT Technologies.
“Cymotive brings deep, proven automotive cybersecurity expertise, and together we can integrate security into the foundation of mobility software—at scale, across programmes, and across the vehicle lifecycle—creating meaningful value for the entire mobility ecosystem,” he added.
The acquisition follows KPIT’s purchase last year of the engineering solutions division of US-based Caresoft Global for up to $191 million.
