Mitsubishi Electric to acquire Nozomi Networks for $883 million
Japan’s Mitsubishi Electric Corporation on Tuesday announced it intends to buy industrial cybersecurity firm Nozomi Networks in a reported $883 million cash and equity deal.
The two companies have a history together — Mitsubishi Electric participated in Nozomi’s $100 million series E funding round last year, and they have collaborated on innovation and go-to-market strategies since then. In July 2024, for example, Nozomi launched its Arc Embedded product in Mitsubishi Electric programmable logic controllers (PLCs) aimed at making it easier to detect and respond to cyber incidents involving critical infrastructure.
As part of the deal, however, Nozomi will operate independently from Mitsubishi Electric as a wholly owned subsidiary, and keep its headquarters in San Francisco and its research and development operations in Switzerland. “This acquisition accelerates Nozomi’s industrial cybersecurity innovation while maintaining the company’s heterogeneous approach to supporting customers and partners,” according to a press release from the two companies.
The deal highlights the growing emphasis on industrial cybersecurity, as critical infrastructure faces relentless attacks from government hackers and ransomware gangs. Nozomi specializes in security operational technology (OT), the hardware and software behind manufacturing, public utilities and other industrial sectors.
In recent years, U.S. government agencies have warned that Chinese hackers are seeking to compromise IT networks used for telecommunications, water utilities and other critical infrastructure in the event of a conflict with the U.S.
An advisory published last year by the Cybersecurity and Infrastructure Security Agency (CISA), NSA and FBI specifically called out a China-based hacking group known as Volt Typhoon, which has been "maintaining access and footholds within some victim IT environments for at least five years."
Mitsubishi Electric, which manufactures electronics used in a wide range of industries, including space development, energy and transportation, reported nearly $37 billion in the fiscal year ending in March 2025.
The acquisition is expected to close in the fourth quarter of 2025.
Adam Janofsky
is the founding editor-in-chief of The Record from Recorded Future News. He previously was the cybersecurity and privacy reporter for Protocol, and prior to that covered cybersecurity, AI, and other emerging technology for The Wall Street Journal.