Auto parts provider Magna and insurer Allianz will exit Israel-based connected automotive security software developer Argus Cyber Security, which has agreed to an acquisition by automotive components producer Continental.
Financial terms were not disclosed but local media reports last month suggested the deal would value Argus at approximately $400m.
Founded in 2013, Argus provides cybersecurity technology for connected cars and commercial vehicles. Its platform informs car manufacturers about threats and enables them to take appropriate action in real-time.
Following the deal, Argus will become part of Continental’s software subsidiary, Elektrobit (EB), which has already integrated the former’s security software into its offerings as part of a collaboration agreed earlier this year.
Argus had raised approximately $30m prior to the acquisition. Allianz Digital Corporate Ventures, a corporate venturing subsidiaey of Allianz, and Magna contributed to the company’s $26m series B round in 2015.
The series B round also included financial services provider SBI Group, Magma Venture Partners, Vertex Venture Capital and individual investor Zohar Zisapel. Magma, Vertex and Zisapel had previously backed a $4m round for Argus in 2014.
Ofer Ben-Noon, co-founder and CEO of Argus, said: “Argus was founded with a vision to protect all vehicles on the road from cyber threats.
“To this end we have developed the most comprehensive automotive cyber security offering in the industry and enjoy global recognition of our leadership. Joining forces with Continental and EB will enable us to further accelerate the realisation of that vision.”