Mitsubishi Electric Buys Nozomi Networks for $883M to Boost Industrial Cybersecurity
U.S. government agencies have sounded the alarm about Chinese hackers' intentions to infiltrate IT networks crucial to American infrastructure, should tensions escalate. Meanwhile, Japanese multinational conglomerate Mitsubishi Electric Corporation has announced its acquisition of industrial cybersecurity specialist Nozomi Networks for $883 million in cash and equity.
Nozomi Networks, which focuses on security operational technology (OT) for manufacturing, public utilities, and other industrial sectors, will continue to operate independently as a wholly owned subsidiary of Mitsubishi Electric. The acquisition, set to close in the fourth quarter of 2025, includes Nozomi's headquarters in San Francisco and its R&D operations in Switzerland.
The deal comes amidst growing concerns over industrial cybersecurity threats. A 2024 advisory by the Cybersecurity and Infrastructure Security Agency (CISA), National Security Agency (NSA), and Federal Bureau of Investigation (FBI) highlighted a China-based hacking group, Volt Typhoon, maintaining access and footholds within some victim IT environments for at least five years. Mitsubishi Electric, with nearly $37 billion in revenue for the fiscal year ending in March 2025, aims to accelerate Nozomi's innovation in industrial cybersecurity while maintaining its heterogeneous approach to supporting customers and partners. Following the acquisition, Edgard Capdevielle, Nozomi's current CEO, will continue to lead the company.
The acquisition of Nozomi Networks by Mitsubishi Electric underscores the increasing importance of industrial cybersecurity in the face of evolving threats from state-sponsored hackers and cybercriminal groups. With this deal, Mitsubishi Electric expands its capabilities to protect critical infrastructure, while Nozomi Networks gains support to further develop its OT security solutions.
