News Center - Press Release
Mitsubishi Electric Signs Agreement to Wholly Acquire Nozomi Networks
Mitsubishi Electric Corporation (TOKYO: 6503) announced today that it has entered into an agreement to acquire all shares of Nozomi Networks Inc., a U.S.- based developer and distributor of operational technology (OT) security solutions. Nozomi Networks serves a diverse range of customers, primarily in social infrastructure sectors such as power and railways, as well as in the manufacturing industry. This acquisition pertains to shares not already owned by Mitsubishi Electric.
Toyko, Japan - September 9, 2025
Rationale for the Transaction
In response to the increasing importance of OT security measures due to the IoT and digital transformation (DX) of manufacturing sites and social infrastructure, Mitsubishi Electric has been dedicated to developing a "One-Stop OT Security Solution" that protects on-site equipment and systems from cyberattacks. This initiative leverages its extensive IT security expertise gained across various sectors, including the financial industry, and aims to promote DX among multiple industries.
Nozomi Networks is a global leader in providing OT security solutions, boasting a high compound annual growth rate (CAGR) of 33% and a strong revenue base with a gross profit margin exceeding 70%. Through this announcement of the acquisition of Nozomi Networks, and its establishment as a subsidiary company, Mitsubishi Electric will strengthen its OT security business. This follows the earlier collaboration agreement with Nozomi Networks in 2024. By integrating solutions in the OT domain, where there are established strengths, with Nozomi's worldclass cutting-edge OT security technology and diverse customer base, Mitsubishi Electric aims to fundamentally enhance its security business.
Furthermore, by leveraging data and insights obtained through Nozomi's solutions for intrusion detection and visualization, and by working responsibly with both companies' diverse installed bases, new services can be co-created with customers. This collaboration will accelerate the growth of Mitsubishi Electric's SerendieTM digital platform, and its related businesses, while providing services and value that safely and reliably support future customers' DX.
Transaction Method
The transaction will be executed through a "reverse triangular merger", whereby Nirvana Merger Sub, Inc. (SPC), a wholly owned subsidiary of Mitsubishi Electric established for the purpose of this transaction as a special purpose vehicle in the United States, will merge with Nozomi Networks.
In connection with the merger Mitsubishi Electric will pay or cause to be paid cash as consideration to the shareholders and holders of equity-linked securities in Nozomi Networks, and all issued and outstanding shares, and equity-linked securities of Nozomi Networks will be cancelled and converted into the right to receive the merger consideration, except that the shares held currently by Mitsubishi Electric will not be entitled to receive the merger consideration. All shares of SPC held by Mitsubishi Electric will be converted into common shares of Nozomi Networks, the surviving entity. As a result, Mitsubishi Electric will acquire all the issued shares of Nozomi Networks, and Nozomi Networks will become a wholly owned subsidiary of Mitsubishi Electric.
The consummation of this transaction is subject to the approval of the necessary regulatory authorities, as well as the fulfillment of other customary conditions required for such transactions.
About Nozomi Networks Inc.
| Name | Nozomi Networks Inc. | ||
|---|---|---|---|
| Location | Suite 3650, 575 Market St, San Francisco, CA 94105 | ||
| President & CEO | Edgard Capdevielle | ||
| Description of business | Development and sales of OT security solutions | ||
| Year of establishment | September 16, 2016 | ||
| Employees | 315 | ||
| Relationship between Mitsubishi Electric and Nozomi Networks (As of the end of August, 2025) | Capital Relationship | Mitsubishi Electric owns a 7.0% stake in Nozomi Networks * | |
| Personnel relationship | Mitsubishi Electric has seconded one executive to Nozomi Networks | ||
| Business relationship | Mitsubishi Electric maintains a commercial relationship with Nozomi Networks | ||
| Nozomi Networks' consolidated operating results and financial positions in the past three years (As of the end of August, 2025) |
|||
| As of / for the year ended) | December 31, 2022 | December 31, 2023 | December 31, 2024 |
| Net revenue | 42,377 | 62,560 | 74,695 |
Schedule
| Mitsubishi Electric's internal decision date | September 9, 2025 (Japan time) |
| Date of execution of the merger agreement with Nozomi Networks | September 9, 2025 (Japan time) |
| Closing date | Within 2025 (planned) |
Equity Interests to be Acquired, Acquisition Price and Ownership Status Before and After the Transaction
| Equity interests held before the transaction | 7.0% |
| Equity interests to be acquired | 93.0% |
| Acquisition price | USD883 million |
| Equity interests held after the transaction | 100.0% |
Future Outlook
Mitsubishi Electric will promptly inform if there is a need to revise its consolidated performance forecasts or if there are any matters that should be disclosed as a result of this transaction.
(Reference) Mitsubishi Electric's Consolidated Financial Results
| Net sales | Operating profit | Income before income tax | Net income attributable to Mitsubishi Electric stockholders | |
| Forecast for the fiscal year ending March 2026 | 5,400,000 | 430,000 | 470,000 | 340,000 |
| Actual for the fiscal year ended March 2025 | 5,521,711 | 391,850 | 437,265 | 324,084 |
- About Mitsubishi Electric Automation, Inc.
Headquartered in Vernon Hills, Ill., Mitsubishi Electric Automation, Inc. is a U.S. affiliate company of Mitsubishi Electric Corporation. It offers a broad product portfolio including programmable automation controllers (PAC), programmable logic controllers (PLC), human machine interfaces (HMI), variable frequency drives (VFD), servo amplifiers and motors, control software, computerized numerical controllers (CNC), motion controllers, robots and low-voltage power distribution products. Additional information about Mitsubishi Electric Automation is available at us.mitsubishielectric.com/fa/en/.
- About Mitsubishi Electric Corporation
With more than 100 years of experience in providing reliable, high-quality products, Mitsubishi Electric Corporation (TOKYO: 6503) is a recognized world leader in the manufacture, marketing, and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation, and building equipment. Mitsubishi Electric enriches society with technology in the spirit of its “Changes for the Better.” The company recorded a revenue of 5,003.6 billion yen (U.S.$ 37.3 billion*) in the fiscal year ended March 31, 2023. For more information, please visit .
*U.S. dollar amounts are translated from yen at the rate of \134=U.S.$1, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2023
- About Mitsubishi Electric Factory Automation Business Group
Offering a vast range of automation and processing technologies, including controllers, drive products, power distribution and control products, electrical discharge machines, laser processing machines, computerized numerical controllers, and industrial robots, Mitsubishi Electric helps bring higher productivity – and quality – to the factory floor. In addition, our extensive networks around the globe provide direct communication and comprehensive support to customers. The global slogan "Automating the World" shows the company's approach to leverage automation for the betterment of society, through the application of advanced technology, sharing know-how and supporting customers as a trusted partner. For more about the story behind "Automating the World" please visit:
- About e-F@ctory
e-F@ctory is Mitsubishi Electric's integrated concept to build reliable and flexible manufacturing systems that enable users to achieve many of their high speed, information driven manufacturing aspirations. Through its partner solution activity, the e-F@ctory Alliance, and its work with open network associations such as The CC-Link Partners Association (CLPA), users can build comprehensive solutions based on a wide ranging "best in class" principle.
In summary, e-F@ctory and the e-F@ctory Alliance enable customers to achieve integrated manufacturing but still retain the ability to choose the most optimal suppliers and solutions.
*e-F@ctory, iQ Platform are trademarks of Mitsubishi Electric Corporation in Japan and other countries.
*Other names and brands may be claimed as the property of others.
*All other trademarks are acknowledged
- Media Contact
Jessica Reitmaier
MEPAX
International PRs for Industry
Tel: +34 695 20 20 02
j.reitmaier@mepax.com
https://www.mepax.com
j.reitmaier@mepax.com
+34 695 20 20 02
-
Inquiries
-
Select
& Quote -
Share
-
Partners