Continental in talks to buy Israeli autos cyber firm Argus

Continental is the world’s second-biggest supplier to carmakers.

By REUTERS
October 31, 2017 07:26
2 minute read.
Continental in talks to buy Israeli autos cyber firm Argus

The logo of Continental AG. (photo credit: REUTERS)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

TEL AVIV/BERLIN - Germany's Continental AG is in advanced talks to buy Israel's Argus Cyber Security, whose technology guards connected cars from hacking, for about $400 million, Israeli media reported on Monday.

Cybersecurity experts have criticized the automotive industry for failing to do more to secure internal communications of vehicles with network-connected features.

Be the first to know - Join our Facebook page.


The danger, they say, is that once external security is breached, hackers can have free rein to access onboard vehicle computer systems which manage everything from engines and brakes to air conditioning and infotainment.

Continental, the world’s second-biggest supplier to carmakers by sales, makes telematics control devices used to transfer data and enable communication between a vehicle and remote management tools such as web panels and mobile apps.

Carmakers say that any vulnerabilities in this area do not directly affect the critical safety features of a vehicle.

Founded in 2013, Argus has raised $30 million, including $26 million two years ago from Magna International, Allianz, SBI Group and Israeli venture capital funds Magma and Vertex.

"This is not the first time such rumors have circulated and Argus does not comment on rumors or speculation," a spokeswoman for Argus said on Monday.

JPOST VIDEOS THAT MIGHT INTEREST YOU:


Officials at Continental declined to comment on what they called "speculation".

Argus already collaborates with Continental - this month it jointly launched a technology for delivering over-the-air vehicle software updates with Continental subsidiary Elektrobit.

MOBILEYE TRIGGER


Earlier this year Intel Corp bought autonomous vehicle firm Mobileye - one of Israel's biggest tech companies - for $15.3 billion. With more than 200 start-ups, Israel is a growing center for automotive technology.

Argus CEO Ofer Ben-Noon told Reuters in March the Mobileye deal could accelerate his company’s growth. "There is no doubt there will be more investments in Israel for automotive, and a lot more M&A," he said at the time.

Continental said in June it was joining a self-driving platform developed by BMW, Intel and Mobileye with the German auto parts and tire maker handling integration of components and software.

The costs of integrating hardware, software and data and the accelerating pace of development of self-driving vehicles has sparked a growing number of alliances between automakers and suppliers.

Continental said it would play a role in commercializing the new platform, which is to be sold to other auto manufacturers.

Traditionally, many of Israel's tech start-ups have sold out at an early stage to global companies, keen to tap into the skills of workers trained in the military and intelligence sectors. This was the case with Waze, the Israeli map app, which Google bought in 2013 for $1.15 billion.

Only a few - such as cyber security leader Check Point Software and software provider Amdocs - have stayed independent long enough to reach a significant size.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

Workers strike outside of the Teva building in Jerusalem, December 2017
December 18, 2017
Workers make explosive threats as massive Teva layoff strikes continue

By MAX SCHINDLER