Mitsubishi Electric acquires Nozomi Networks for $883m, boosting OT security

Mitsubishi Electric Corporation announced an agreement to fully acquire Nozomi Networks Inc., a U.S.-based OT security solutions provider, for $883 million. The transaction, expected to close in 2025, will make Nozomi Networks a wholly owned subsidiary, building on Mitsubishi Electric's existing 7.0% stake and prior collaboration. This strategic move aims to combine Mitsubishi Electric's OT domain strengths with Nozomi's security technology, positioning the company as a global leader in OT security solutions.

The acquisition is crucial for strengthening Mitsubishi Electric’s "One-Stop OT Security Solution" and expanding its Serendie-related businesses. By integrating Nozomi's SaaS products, cloud infrastructure, and AI technology, Mitsubishi Electric plans to co-create new services, leveraging secure data from diverse customer bases. This is projected to contribute to achieving 1.1 trillion yen in sales for Serendie-related businesses by FY2031, significantly driving future growth.

Nozomi Networks, established in 2016, reported net revenue of $74,695 thousand for 2024 and a gross profit margin exceeding 70%. Its portfolio includes advanced data collection, visualization, and AI-powered analysis solutions that monitor OT networks for anomalies. This acquisition targets the growing OT security market, driven by increased cyberattacks and stricter regulations.