Thought Leadership
With the 883-million-dollar-takeover of Nozomi Networks, Japanese industrial giant Mitsubishi Electric is making its largest acquisition to date. The aim: to strengthen its position in the growing market for industrial cyber security.
The deal does not come as a complete surprise: Mitsubishi Electric had already acquired a seven percent stake in the US company specializing in OT and IoT security in 2024. It is now buying up the remaining shares for 883 million dollars, valuing Nozomi Networks at just under one billion dollars.
Autonomous operation under a Japanese umbrella
Despite the full takeover, little will change operationally for Nozomi Networks. The company, which was founded in 2013, will retain its locations in San Francisco and Switzerland as well as its independence as a subsidiary. Existing customer relationships and partnerships will also remain unaffected, both sides have assured.
The figures speak for themselves: Nozomi Networks increased its annual turnover from 62 million dollars (2023) to 75 million dollars (2024). Since its foundation, the company has raised over 250 million dollars in venture capital.
AI meets industry experience
Nozomi’s core business lies in monitoring and securing production facilities and IoT infrastructures. The platform automatically recognizes assets, continuously monitors network activities and identifies anomalies using machine learning. It also offers vulnerability analysis and remote management.
“We are combining a century of industrial expertise with state-of-the-art AI technology for cyber security,” says Nozomi co-founder Andrea Carcano, explaining the strategic value of the merger. The result should be AI-based security solutions for all OT and IoT areas.
The transaction is scheduled to close in Q4 2025.
