Stock market today: Nasdaq closes above 23,000 for first time as tech rebounds
SAN FRANCISCO - Mitsubishi Electric Corporation (TOKYO:6503), a financially robust company trading at a P/E ratio of 8.25 and showing strong market performance with a 45% gain year-to-date, has signed a definitive agreement to acquire industrial cybersecurity company Nozomi Networks, according to a press release issued Tuesday. According to InvestingPro analysis, Mitsubishi Electric currently appears undervalued based on its Fair Value assessment.
The acquisition, expected to close in the fourth quarter of 2025, will make Nozomi Networks a wholly owned subsidiary operating independently within Mitsubishi Electric. Financial terms of the deal were not disclosed. InvestingPro data reveals Mitsubishi Electric maintains a strong financial position with minimal debt-to-capital ratio of 0.02 and an excellent financial health score rated as "GREAT" by InvestingPro analysts. InvestingPro subscribers have access to 10 more key insights about Mitsubishi Electric’s financial strength and market position.
Nozomi Networks, headquartered in San Francisco with research and development in Mendrisio, Switzerland, specializes in security solutions for operational technology (OT), Internet of Things (IoT), and cyber-physical systems (CPS).
The two companies have an existing relationship, with Mitsubishi Electric having participated in Nozomi’s $100 million Series E funding round announced in March 2024.
"By becoming part of Mitsubishi Electric, we will combine our strengths to drive the next generation of industrial security and innovation," said Edgard Capdevielle, President and CEO of Nozomi Networks.
Satoshi Takeda, Mitsubishi Electric Senior Vice President and Chief Information Officer, stated that the acquisition would enable the companies to "co-create valuable new services while supporting Nozomi’s commitment to innovation and customer flexibility."
According to the announcement, Nozomi Networks will maintain its brand, leadership, teams, and operations, with no disruptions to current operations, roadmaps, or partnerships.
Barclays is serving as exclusive financial advisor to Nozomi Networks, while EY Strategy and Consulting Co., Ltd. is acting as financial advisor to Mitsubishi Electric for the transaction.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.