Japanese multinational Mitsubishi Electric is set to fully acquire Nozomi Networks, a US-based provider of operational technology security solutions, in a deal worth $883m.
Currently, Mitsubishi Electric holds a 7% stake in Nozomi Networks.
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The transaction, anticipated to close this year, is contingent upon regulatory approvals and customary conditions.
By integrating Nozomi Networks’ advanced intrusion detection and visualisation technologies, Mitsubishi Electric aims to accelerate its Serendie digital platform and its associated businesses. It will also enable the co-creation of new services with customers.
Established in 2016, Nozomi Networks has a workforce of over 300 people. The company is headquartered in San Francisco, California.
The acquisition process will be carried out via a reverse triangular merger, with Mitsubishi Electric’s special purpose vehicle, Nirvana Merger Sub (SPC), merging with Nozomi Networks.
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By GlobalDataShareholders of Nozomi Networks will receive cash consideration for their shares, which will be cancelled and converted into the right to receive the merger consideration, excluding the shares already owned by Mitsubishi Electric.
Upon completion, all shares of SPC will become common shares of Nozomi Networks, making it a wholly owned subsidiary of Mitsubishi Electric.
This February, Mitsubishi Electric and HD Renewable Energy, a Taipei-based solar power and battery energy storage systems developer, agreed to collaborate 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 to support the development and management of solar power and battery storage systems, as well as electricity retailing.
