Cybersecurity company Nozomi Networks Inc. today announced that it has agreed to be acquired by Mitsubishi Electric Corp., a major supplier of industrial equipment.

The deal values Nozomi at about $1 billion. The sum comprises $883 million that Mitsubishi Electric will pay as part of the acquisition and about $117 million worth of shares it already owns. The company obtained those shares by participating in a $100 million Series E round that Nozomi raised last March.

Tokyo-based Mitsubishi Electric generated about $37.4 billion in revenue during its most recent fiscal year. It sells factory automation equipment such as robotic arms. The company also makes a wide range of other products including home appliances and satellites.

San Francisco-based Nozomi, in turn, sells cybersecurity software for industrial systems. The company’s technology is used in factories, cargo ships, power grids and a wide range of other environments. Nozomi claims that the 12,000-plus deployments of its software running worldwide protect more than 115 million devices.

Before administrators can scan an industrial system for malware, they have to find it. Nozomi provides an application called Guardian that can automatically map out all the devices connected to a corporate network. It does so by monitoring data traffic for packets generated by unknown endpoints.

Guardian is designed to monitor wired networks. For wireless networks, Nozomi provides a physical cybersecurity sensor called Guardian Air. It monitors the data that connected devices send to one over Wi-Fi and Bluetooth. Guardian Air can spot not only cybersecurity risks but also other issues such as radio frequency interference. 

Manufacturers use devices called programmable logic controllers, or PLCs, to manage the automation equipment in their factories. A PLC is a ruggedized computer designed to coordinate systems such as robotic arms. Nozomi offers a cybersecurity application called Arc Embedded that can run directly on PLCs to detect malicious activity.

The company sells Arc Embedded in several editions. One of them is optimized to run on PLCs made by Mitsubishi Electric. There’s also a version for remote terminal units, or RTUs, which are specialized chips used to remotely manage connected devices.

Nozomi sells its Arc and Guardian product lines alongside several other offerings. There’s a cloud-based observability console, Vantage, that allows administrators to centrally monitor devices protected by Arc and Guardian. Additionally, Nozomi offers a threat intelligence feed that companies can use to enrich the cybersecurity data they collect from their networks.

“By becoming part of Mitsubishi Electric, we will combine our strengths to drive the next generation of industrial security and innovation,” said Nozomi Chief Executive Officer Edgard Capdevielle. “Nothing will change in our day-to-day engagement with Nozomi customers and partners – they will continue to receive the same support and service.”

Mitsubishi Electric expects to close the acquisition by year’s end. Nozomi will continue to operate under its current brand as an independent subsidiary.

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