Mitsubishi Electric seals USD $1bn Nozomi Networks deal
Mitsubishi Electric has completed its acquisition of operational technology and internet of things security firm Nozomi Networks in a deal valued at USD $1 billion.
Nozomi Networks will operate as a wholly owned subsidiary. The company said it will continue to run independently and keep its existing approach to working with multiple technology suppliers.
Nozomi Networks said it recently surpassed USD $100 million in annual revenue. It also said it has expanded its customer base among large organisations across sectors including oil and gas, pharmaceuticals, utilities and mining.
The company positions its products around security for operational technology, industrial control systems and cyber-physical systems. These environments have drawn increased attention from boards and regulators as cyber incidents affecting critical infrastructure have risen in frequency and impact.
Nozomi Networks said it intends to continue offering what it describes as vendor-agnostic OT and IoT cybersecurity products. It also said it will keep its brand, leadership team and operating structure under Mitsubishi Electric ownership.
Operating model
Under the structure set out by the companies, Nozomi Networks will keep its offices and points of contact unchanged. It also said its teams and operations will remain in place.
The company said it expects continuity for its existing customer and partner network. It cited its established go-to-market partnerships as part of its approach to selling and deploying its products.
Nozomi Networks highlighted partner relationships with Schneider Electric, Hitachi Cyber, Nvidia, Dispel and Xona. It also cited headcount growth during the past year.
The acquisition gives Mitsubishi Electric ownership of a specialist cyber security supplier focused on operational environments. Mitsubishi Electric sells industrial automation and control products. It also operates in sectors that include power systems, transport and manufacturing.
Financial milestones
Nozomi Networks said it has reached break-even performance and sustained cash flow. The company described itself as the first privately held OT cybersecurity company to reach that level.
The company cited inclusion in a number of industry rankings. These included the Deloitte Technology Fast 500 and the Fast Company World's Most Innovative Companies list. It also referenced positions in Gartner and Forrester research publications.
"Mitsubishi Electric acquired Nozomi Networks for the same reasons our customers trust us every day," said Edgard Capdevielle, Chief Executive Officer, Nozomi Networks.
"We have a proven track record of innovation and industry leadership and a unique vendor-agnostic approach that is a critical ingredient to our success," said Capdevielle.
"We will continue to advance the highest levels of quality and excellence in our platform and relationships that we always have moving forward as an independent subsidiary of Mitsubishi Electric, and we're excited about the opportunities this brings," said Capdevielle.
Product focus
Nozomi Networks described its core offering as a security platform for OT and IoT environments. The company said the platform provides asset visibility and threat detection. It also said the platform covers multiple attack surfaces and links security activity to risk management practices.
Nozomi Networks also highlighted its work on artificial intelligence. The company said it has embedded AI since its inception. It said AI forms part of its analysis and response workflows.
The company pointed to product updates released during the past year. It referenced Arc, which it described as a cybersecurity solution that automates threat response in operational environments. It also referenced Vantage IQ, which it described as a private AI assistant trained for OT and IoT security teams.
"This acquisition brings us into a new era of innovation. It positions us to better serve our customers globally and meet the needs of an early majority market and the challenges of a rapidly evolving OT/IoT cybersecurity landscape," said Andrea Carcano, Chief Product Officer, Nozomi Networks.
"Nozomi is solidly positioned to extend its stature as the leader in OT/IoT cybersecurity. There is much more ahead for us, with game changing new innovations coming in 2026. We look forward to working with our customers and partners to deliver the best possible solution," said Carcano.
Nozomi Networks said it will continue operating under its existing leadership team as it develops its product roadmap under Mitsubishi Electric ownership.