Critical Infrastructure Security,
Endpoint Security,
Governance & Risk Management
Mitsubishi Electric’s $883M Acquisition of Nozomi Enhances Cyber Defense for Critical Infrastructure
Mitsubishi Electric has announced plans to acquire Nozomi Networks for $883 million, aiming to leverage artificial intelligence and contextual data to bolster the security of critical infrastructure. This strategic move underscores the manufacturer’s commitment to enhancing cyber defense mechanisms across its industrial operations.
The Tokyo-based firm will integrate Nozomi’s expertise in operational technology (OT), Internet of Things (IoT), and cyber-physical system security to boost visibility and threat detection within complex industrial systems. By embedding Nozomi’s AI-driven cybersecurity technology into its existing Serendie digital platform, Mitsubishi Electric seeks to transform industrial operations through enhanced data analytics and security measures.
Mitsubishi Electric’s Senior Vice President, Satoshi Takeda, expressed enthusiasm about welcoming Nozomi into the company, citing the vendor’s innovative OT security solutions and robust developmental track record. He noted that merging Nozomi’s strengths with Mitsubishi Electric’s established expertise in OT could yield significant advancements in cybersecurity.
Nozomi Networks, established in 2016 with a workforce of 315, has successfully raised $266 million in funding, including a recent $100 million Series E round co-led by Mitsubishi and Schneider Electric. With Mitsubishi already holding a 7% stake in Nozomi, this acquisition will further cement their partnership. In 2024, Nozomi reported sales of $74.7 million, a 19.4% increase from the previous year, showcasing notable growth simply ahead of this impending deal expected to finalize in 2025.
According to Nozomi’s CEO, Edgard Capdevielle, the transition to being a wholly-owned subsidiary will allow for accelerated innovation and access to global markets while maintaining the company’s culture and customer relationships. Nozomi has experienced a compound annual growth rate (CAGR) of 33%, with gross margins exceeding 70%. This acquisition promises to boost their commercial capabilities significantly.
Capdevielle noted that joining Mitsubishi Electric will facilitate a new era of industrial security and innovation. He reassured current customers and partners that support and service levels will remain unchanged, providing continuity within their operations and established partnerships.
The synergy between Mitsubishi Electric and Nozomi is expected to streamline and scale Nozomi’s innovative capabilities, aligning seamlessly with the increasing demands of modern industrial environments. Capdevielle stressed that the operational technology and IoT cybersecurity sectors are ripe for pioneering, first-to-market solutions, further emphasizing the importance of their collaboration.
Mitsubishi Electric plans to integrate Nozomi’s advanced software and AI capabilities to refine their digital service offerings, specifically in areas like threat detection and predictive maintenance. By leveraging Nozomi’s competencies to monitor and secure networks, Mitsubishi aims to enhance operational optimization and data analytics.
Nozomi’s headquarters will remain in San Francisco, with its research and development center in Switzerland continuing operations unhindered. The ongoing trend of industrial manufacturers acquiring security providers emphasizes the need for robust cybersecurity frameworks within operational technology. As such, the acquisition of Nozomi Networks positions Mitsubishi Electric as a key player in securing critical infrastructure against evolving cyber threats.
