Mitsubishi Electric to acquire Nozomi Networks in $1 billion deal

The acquisition represents the Japanese industrial giant’s largest to date.

Industrial conglomerate Mitsubishi Electric has agreed to acquire OT and IoT cybersecurity specialist Nozomi Networks in a transaction that values the San Francisco-based firm near the $1 billion mark. The deal, slated to close in the fourth quarter of 2025, will see Nozomi Networks become a wholly owned subsidiary while continuing to operate independently.

The acquisition represents Mitsubishi Electric’s largest to date, with the company set to purchase the 93% of Nozomi shares it does not already own for $883 million in cash. Mitsubishi Electric previously acquired a 7% stake through Nozomi’s $100 million Series E funding round in early 2024, a relationship that laid the foundation for the takeover.

Following the transaction’s closure, Nozomi Networks will retain its brand, leadership, and personnel, maintaining its headquarters in San Francisco and its research and development hub in Switzerland. Both parties have indicated there will be no disruption to operations, roadmaps, or external partnerships.

Nozomi Networks focuses on security in operational technology (OT), Internet of Things (IoT), and cyber-physical systems (CPS). Its platform, designed for critical infrastructure and industrial organizations, focuses on asset discovery, continuous monitoring, anomaly detection, and vulnerability management. The company generated $75 million in revenue in 2024, an increase from $62 million the previous year.

The integration of Nozomi’s cloud-first, AI-powered solutions into Mitsubishi Electric’s portfolio grants the Japanese industrial giant a stake in advanced industrial cybersecurity at a time when OT and IoT environments are seeing increased attention due to rising threats of cyberattacks and operational disruptions. 

“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,” said Edgard Capdevielle, president and CEO of Nozomi Networks. “With the combined global reach and resources of both companies, we can supercharge our innovation engine, helping industrial organizations secure and accelerate their own digital transformations.”

Mitsubishi Electric, which brings more than a century of experience in industrial technology, sees the purchase as a way to accelerate the digital transformation of critical infrastructure clients globally. Combining its operational expertise with Nozomi’s technology is expected to result in the development of new AI-powered solutions tailored for OT and IoT use cases.

“This acquisition will enable us to co-create valuable new services while supporting Nozomi’s commitment to innovation and customer flexibility,” said Satoshi Takeda, Mitsubishi Electric’s senior vice president. “Together, we can help our customers achieve their digital transformation goals while enhancing security, efficiency, and resilience.”

The transaction is expected to receive all necessary regulatory approvals and is anticipated to close by the end of 2025. 

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