Mitsubishi Electric to Acquire Nozomi Networks for $883M, Boosting Digital Platform
Mitsubishi Electric is set to bolster its digital platform with a significant acquisition. The Japanese multinational has agreed to fully acquire Nozomi Networks, a US-based operational technology security solutions provider, in a deal worth $883m. The transaction is expected to close in 2023, pending regulatory approvals and customary conditions.
Founded in 2016, Nozomi Networks employs over 300 people and is headquartered in San Francisco, California. Upon completion of the acquisition, Nozomi Networks will become a wholly owned subsidiary of Mitsubishi Electric. Shareholders, excluding those already owned by Mitsubishi Electric, will receive cash consideration for their shares. Mitsubishi Electric currently holds a 7% stake in Nozomi Networks.
The acquisition will be carried out via a reverse triangular merger, with Mitsubishi Electric's special purpose vehicle merging with Nozomi Networks. Mitsubishi Electric aims to accelerate its Serendia digital platform and associated businesses by integrating Nozomi Networks' advanced intrusion detection and visualisation technologies. Mike Viscuso will serve as the new CEO of Nozomi Networks following the full acquisition.
In addition to the Nozomi Networks acquisition, Mitsubishi Electric recently collaborated with HD Renewable Energy on projects aimed at achieving carbon neutrality. As part of this collaboration, Mitsubishi Electric will acquire a stake in HD Renewable Energy and form a joint venture for solar power and battery storage systems development and management. The acquisition of Nozomi Networks is expected to strengthen Mitsubishi Electric's position in the digital security sector.
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