Mitsubishi Electric Boosts Digital Platform and Renewables with $883M Acquisition
Mitsubishi Electric is set to bolster its digital platform and electric energy efforts with a significant acquisition. The Japanese multinational has agreed to buy Nozomi Networks, a US-based operational technology security solutions provider, for $883m. The deal, anticipated to close in 2023, will see Nozomi Networks become a wholly owned subsidiary of Mitsubishi Electric.
Mitsubishi Electric currently holds a 7% stake in Nozomi Networks, indicating a long-standing interest in the company. The acquisition will be facilitated through a reverse triangular merger, involving Mitsubishi Electric's special purpose vehicle, Nirvana Merger Sub (SPC). Upon completion, Nozomi Networks, established in 2016 with a workforce of over 300 people, will become a fully owned subsidiary.
The acquisition is expected to accelerate Mitsubishi Electric's Serendia digital platform and associated businesses. Nozomi Networks' advanced intrusion detection and visualisation technologies will be integrated, enabling the co-creation of new services with customers. Edgard Capdevielle, CEO of Nozomi Networks, will play a crucial role in this integration.
In addition to the acquisition, Mitsubishi Electric and HD Renewable Energy have agreed to form a joint venture. This collaboration, announced in February 2023, aims to support the development and management of solar power and battery storage systems, as well as electricity retailing. This move aligns with Mitsubishi Electric's commitment to achieving carbon neutrality.
The acquisition of Nozomi Networks by Mitsubishi Electric, valued at $883m, is expected to strengthen the Japanese conglomerate's digital platform and renewable energy initiatives. The deal, subject to regulatory approvals, is anticipated to close in 2023. Upon completion, Nozomi Networks will bring its advanced security technologies to Mitsubishi Electric, enhancing the company's offerings and supporting its commitment to sustainability.
