Mitsubishi Electric to buy cybersecurity firm Nozomi Networks for $1B

Another day, another big deal in the security industry. On Tuesday, Mitsubishi Electric announced it will acquire IoT/OT cloud company Nozomi Networks for nearly $1 billion.

The news of the Mitsubishi-Nozomi acquisition comes on the heels of Monday's news that Netskope made a $6 billion IPO bid, and roughly a month after Palo Alto Networks and CyberArk announced its $25 billion merger.

In yet another new deal demonstrating activity in the security market, SentinelOne on Sept. 8 said it planned to acquire Observo AI to help build-out its AI-based security platform.

“While the Nozomi deal highlights the growing value of industrial cybersecurity, it also raises questions about integration and whether big conglomerates can maintain the innovation that smaller, specialized firms like Nozomi bring to the market,” said Hank Thomas, co-founder and CEO at Strategic Cyber Ventures. “This is a great first step, but will the growth continue?”

Edgard Capdevielle, president and CEO of Nozomi Networks, was clearly excited about the Mitsubishi deal.

“By becoming part of Mitsubishi Electric, we will combine our strengths to drive the next generation of industrial security and innovation to bring additional value for customers around the world,” said Capdevielle. 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."

Once the deal closes, Nozomi Networks will become a wholly owned subsidiary, operating independently of Mitsubishi Electric. The two companies have been partnering on projects ever since Mitsubishi Electric participated in Nozomi's $100M Series E funding round in March 2024.

John Gallagher of Viakoo added that many organizations have their fleets of IoT/OT systems as their largest attack surface, yet traditional IT-based cybersecurity tools do not address them. Gallagher said Mitsubishi’s depth-in-manufacturing and IoT/OT environments gives Nozomi advantages in future product developments.

“In an AI-driven cybersecurity world, data is king,” said Gallagher. “The access to data this provides Nozomi should help accelerate their AI product direction."