Mitsubishi Electric to Acquire Nozomi Networks for $883M, Boosting OT Security
Mitsubishi Electric is set to enhance its operational technology security capabilities with a full acquisition of Nozomi Networks, a US-based specialist in the field. The deal, valued at $883m, is expected to close in 2023, subject to regulatory approvals.
Nozomi Networks, established in 2016, employs over 300 people and is headquartered in San Francisco, California. Upon completion of the acquisition, it will become a wholly owned subsidiary of Mitsubishi Electric.
The acquisition will be facilitated through a reverse triangular merger, involving Mitsubishi Electric's special purpose vehicle, Nirvana Merger Sub (SPC). Mitsubishi Electric currently holds a 7% stake in Nozomi Networks.
Mitsubishi Electric aims to leverage Nozomi Networks' advanced intrusion detection and visualisation technologies to accelerate its Serendia digital platform and associated businesses. The collaboration will also see the co-creation of new services with customers.
In addition to the Nozomi Networks acquisition, Mitsubishi Electric has agreed to form a joint venture with HD Renewable Energy to support the development and management of solar power and battery storage systems, as well as electricity retailing. These strategic moves align with Mitsubishi Electric's commitment to achieving carbon neutrality.
