Mitsubishi Electric Corporation is acquiring operational technology (OT), Internet of Things (IoT), and cyber-physical systems (CPS) security company, Nozomi Networks. The Wall Street Journal says this is a $1 billion deal. Nozomi Networks says it’s also a strategic move to accelerate its industrial cybersecurity while maintaining its independent operations.

A Billion Dollar Cybersecurity Deal

This transaction follows a prior collaboration between the two companies. In March 2024, Mitsubishi Electric participated in Nozomi’s $100M Series E funding round. According to Nozomi, the two companies have worked together on innovation and go-to-market strategies, which helped make the acquisition possible.

Nozomi ensures its customers and partners that its “brand, leadership, teams, and operations” will not change. According to the news release, operations, roadmaps, and partnerships will not be disrupted. In addition, its teams, offices, and points of contact will remain the same. The headquarters will stay in San Francisco, California, and the research and development will stay in Switzerland.

“By combining Nozomi’s strengths with Mitsubishi Electric’s extensive expertise and capabilities in OT, I believe we can achieve even more,” said Satoshi Takeda, Senior Vice President at Mitsubishi Electric. “This acquisition will enable us to co-create valuable new services while supporting Nozomi’s commitment to innovation and customer flexibility.”

“Nothing will change in our day-to-day engagement with Nozomi customers and partners – they will continue to receive the same support and service, and the same cutting-edge OT and IoT cybersecurity platform they have come to trust,” Edgard Capdevielle, President and CEO of Nozomi Networks, added. “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.”

The acquisition is expected to close in the fourth calendar quarter of 2025.