KPIT Technologies has announced the acquisition of a strategic stake in Cymotive Technologies, strengthening its presence in the fast-growing automotive cybersecurity segment and expanding its software-defined vehicle (SDV) capabilities.
The Pune-headquartered company said the investment aligns with its long-term strategy of building differentiated AI-led solutions for global automobile manufacturers.
Cymotive, headquartered in Tel Aviv, Israel, is a leading automotive cybersecurity specialist focused on securing software-defined vehicles, connected vehicles, and fleet ecosystems throughout the vehicle lifecycle. The company was jointly founded by senior Israeli cybersecurity experts and CAR/AD, the automotive software arm of the Volkswagen Group.
According to the company, Cymotive offers solutions including Cybersecurity Management Systems (CSMS), automated penetration testing, vulnerability management, intrusion detection systems (IDS), cloud-based automotive cybersecurity platforms, engineering compliance, and homologation services.
KPIT Technologies stated that the acquisition will enhance its capabilities in embedded systems, SDV engineering, and automotive cybersecurity while helping global OEMs adopt integrated cybersecurity frameworks from vehicle design to production and operations.
The deal structure involves an initial investment of USD 10 million through preference capital, expected to close by mid-June 2026. The investment may later convert into a 26% equity stake based on certain performance milestones achieved by Cymotive within eight quarters.
Following the conversion, KPIT plans to gradually acquire the remaining stake in two phases, eventually increasing its ownership to 100% by mid-2029. The total acquisition cost is estimated to range between USD 60 million and USD 120 million, including the upfront investment.