Automotive components producer Continental has entered advanced talks to acquire Argus Cyber Security, an Israel-based connected car security technology developer backed by auto parts provider Magna and insurer Allianz, Reuters reported today.
The prospective deal would value Argus, which has raised about $30m in venture capital, at about $400m, according to local media reports.
Founded in 2013, Argus is developing cybersecurity software that will protect telematics and infotainment systems in connected cars from being hacked, and reinforces in-vehicle technologies such as brakes, advanced driver assistance systems and door control.
Continental provides telematics systems as part of its larger offering, and its Elektrobit unit formed a collaboration agreement with Argus earlier this year that integrated the latter’s security software into its software and tools.
Magna International and Allianz subsidiary Allianz Digital Corporate Ventures were among the investors in the company’s last round, a $26m series B in 2015.
Financial services provider SBI Group, Magma Venture Partners, Vertex Venture Capital and Zohar Zisapel, co-founder of networking and telecommunications equipment maker Rad Group, also took part in the 2015 round, the latter three having backed a $4m round closed by Argus the year before.