KPIT Technologies to Acquire Israeli Cybersecurity Firm Cymotive in Multi-Stage Deal

KPIT Technologies announced on May 6, 2026, that its board of directors has approved the strategic acquisition of a stake in Israel-based Cymotive Technologies.

The acquisition of Cymotive, which specializes in vehicle lifecycle cybersecurity, will be executed through a phased cash consideration. KPIT will initially invest $10 million in preference capital, a transaction expected to close by mid-June 2026. This investment is scheduled to convert into a 26 percent equity stake within eight quarters, contingent upon Cymotive meeting specific performance milestones. KPIT expects to complete a 100 percent buyout of the firm by mid-2029. The total cost for the full acquisition is projected to range between $60 million and $120 million, based on the target entity's future revenue and earnings.

Founded in 2016 by Israeli cybersecurity leaders and CARIAD, the software subsidiary of the Volkswagen Group, Cymotive provides security architecture, threat modeling, and intrusion detection for connected vehicles. The company is headquartered in Tel Aviv and has seen its annual turnover decline over the last three years, reporting $42.4 million in 2023, $32.7 million in 2024, and $19.2 million in 2025.

KPIT stated that the investment aligns with its long-term strategy to embed cybersecurity into vehicle platforms from the design phase through production and operations. The move is intended to strengthen the company’s software-defined vehicle and systems engineering business while creating new product and licensing-led revenue streams.