Mitsubishi Electric acquires Nozomi in USD $1 billion OT cyber deal
Mitsubishi Electric has announced the acquisition of industrial cybersecurity provider Nozomi Networks in a transaction valued at approximately USD $1 billion, making Nozomi a wholly owned subsidiary.
The agreement comprises an USD $883 million purchase, in addition to previously acquired Nozomi stock by Mitsubishi Electric. This brings the total deal value to nearly AUD $1.5 billion. Nozomi Networks specialises in operational technology (OT), Internet of Things (IoT) and cyber-physical systems security, with an established presence protecting critical infrastructure in the Asia-Pacific region, including Australia and New Zealand.
Transaction details
This acquisition follows Mitsubishi Electric's participation as a major investor in Nozomi's USD $100 million seed funding round last year. The transaction represents the largest-ever acquisition in the OT cybersecurity sector.
Upon completion, Nozomi Networks will operate as an independent entity within Mitsubishi Electric. The acquisition is expected to close in the fourth quarter of 2025, with Nozomi's headquarters remaining in San Francisco and research and development continuing in Mendrisio, Switzerland.
Expanding cybersecurity capabilities
Mitsubishi Electric states that this move is aimed at accelerating both digital transformation and cybersecurity innovation for industrial and critical infrastructure clients globally. The company brings over 100 years of expertise in industrial operational technology to the partnership.
"By combining Mitsubishi Electric's century of global industrial expertise with Nozomi Networks' innovations in data science, AI/ML and industrial cybersecurity, we have a unique opportunity to create a new generation of AI-powered solutions that will strengthen cyber and operations through power new innovations for customers across all OT/IoT use cases and industries around the world," said Nozomi co-founder Andrea Carcano. "Together, we'll make the world's critical infrastructure safer, more resilient, and more efficient."
The acquisition is intended to accelerate Nozomi's pace of cybersecurity innovation, while maintaining the company's current approach to supporting a variety of customers with different technology platforms. Both companies have signalled their intention to collaborate closely on the development of AI-driven tools and new digital services.
Maintaining operations and partnerships
Nozomi Networks has confirmed that its brand, leadership team, global offices, and partners will remain intact following the acquisition. There will be no change to current partnerships, ongoing projects, or roadmaps, ensuring continuity for the company's customers.
"This marks an exciting new chapter for Nozomi Networks. By becoming part of Mitsubishi Electric, we will combine our strengths to drive the next generation of industrial security and innovation to bring additional value for customers around the world. Nothing will change in our day-to-day engagement with Nozomi customers and partners – they will continue to receive the same support and service, and the same cutting-edge OT and IoT cybersecurity platform they have come to trust. With the combined global reach and resources of both companies, we can supercharge our innovation engine, helping industrial organisations secure and accelerate their own digital transformations," said Nozomi Networks President and Chief Executive Officer Edgard Capdevielle.
The focus following the acquisition will be on jointly developing secure, efficient technologies that aim to improve operational resilience for critical infrastructure providers, expand customer flexibility, and enhance cyber defences across various industries.
Strategic objectives
Mitsubishi Electric and Nozomi Networks have been collaborating since the March 2024 funding round, sharing a mutual perspective on the application of artificial intelligence and data analysis to OT/IoT environments. The deal is expected to support a partner-centric business model and maintains a strong commitment to customer service and corporate culture.
"We are excited to welcome Nozomi to the Mitsubishi Electric family. Their cutting-edge OT security technology and rapid development philosophy have earned them a strong reputation. By combining Nozomi's strengths with Mitsubishi Electric's extensive expertise and capabilities in OT, I believe we can achieve even more. This acquisition will enable us to co-create valuable new services while supporting Nozomi's commitment to innovation and customer flexibility. Together, we can help our customers achieve their digital transformation goals while enhancing security, efficiency, and resilience," said Satoshi Takeda, Mitsubishi Electric Senior Vice President, Chief Digital Officer, and Chief Information Officer.
EY Strategy and Consulting is acting as the financial advisor, with White & Case as legal advisor to Mitsubishi Electric. Barclays is financial advisor to Nozomi Networks, with Gunderson Dettmer as its legal counsel.
