Mitsubishi Electric to Bolster Digital Platform and Enter Renewables with $883M Acquisition
Mitsubishi Electric is set to bolster its digital platform and expand into renewable energy with a significant acquisition. The Japanese multinational has agreed to fully acquire Nozomi Networks, a US-based operational technology security specialist, for $883m. The deal, expected to close in 2023, will see Nozomi Networks become a wholly-owned subsidiary of Mitsubishi Electric.
The acquisition aims 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. This collaboration will also extend into renewable energy, with Mitsubishi Electric acquiring a stake in HD Renewable Energy and forming a joint venture. This will support the development and management of solar power and battery storage systems, as well as electricity retailing.
Founded in 2016, Nozomi Networks has a workforce of over 300 people and is headquartered in San Francisco, California. Its CEO is Edgard Capdevielle. Mitsubishi Electric currently holds a 7% stake in the company. The acquisition process will be carried out via a reverse triangular merger, with Mitsubishi Electric's special purpose vehicle merging with Nozomi Networks.
Upon completion, this acquisition will strengthen Mitsubishi Electric's digital platform and expand its presence in the renewable energy sector. It will also provide Nozomi Networks with the resources to grow and innovate within the operational technology security space. The transaction is subject to regulatory approvals and customary conditions, with a closure anticipated in 2023.
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