Acquisitions · Industrial cybersecurity
Mitsubishi Electric to buy OT security firm Nozomi Networks for $883 million
- Buyer
- Mitsubishi Electric (Tokyo)
- Target
- Nozomi Networks, San Francisco, California
- Value
- $883M (for the 93% it did not own)
- Status
- Completed on January 28, 2026.
- Date
- 2025-09-09
Mitsubishi Electric agreed to acquire San Francisco-based Nozomi Networks, which protects operational technology such as factory and infrastructure control systems from cyberattacks. It already held about 7% and will pay $883 million for the remainder through a reverse triangular merger. Nozomi becomes a wholly owned subsidiary.
Why it matters
Mitsubishi Electric is adding software and security to its factory automation hardware, and Nozomi's tools can be bundled with its control equipment. It is one of the largest acquisitions in industrial cybersecurity.
The deal
The merger agreement was announced on September 9, 2025. Mitsubishi Electric already held a 7.0% stake on a diluted basis and paid about $883 million in cash, roughly ¥130 billion, for the remaining 93.0%. Press reports valued the whole company at about $1 billion. At the time, it was the largest acquisition by price in Mitsubishi Electric's history.
EY Strategy and Consulting was Mitsubishi Electric's financial adviser and White & Case its legal adviser. Barclays was Nozomi's exclusive financial adviser and Gunderson Dettmer its legal counsel.
About Nozomi Networks
Nozomi was founded in 2016. Its customers are in power, rail and other infrastructure as well as manufacturing such as autos. Revenue rose from $42.4 million in 2022 to $62.6 million in 2023 and $74.7 million in 2024, with gross margins above 70%. At completion, Nozomi reported 2025 net revenue of $101.7 million and 336 employees as of December 2025. It had raised more than $250 million before the deal, including a $100 million Series E in 2024 in which Mitsubishi Electric took part.
Strategy
Mitsubishi Electric gave two aims at its September 2025 briefing. The first was to grow its OT security business, which it wants to expand tenfold over ten years. The second was to support its Serendie digital platform. Chief Digital Officer Satoshi Takeda said security is the key once a company starts collecting data from customers' equipment. The two companies had signed a business partnership in March 2024.
Closing
At signing, the companies expected to close in 2025, subject to regulatory approvals. Completion was announced on January 28, 2026 in the US, and on January 29 in Japan. Nozomi continues as an independent subsidiary, keeping its brand, a vendor-neutral product roadmap and its existing partnerships.
Sources
Kakehashi M&A News home
