Top stories.
- Mitsubishi to acquire Nozomi Networks for nearly $1 billion.
- ID.me raises $340 million at a $2 billion valuation.
- IQM Quantum Computers secures $320 million in Series B funding.
Mergers and acquisitions.
Japanese technology giant Mitsubishi Electric has agreed to acquire San Francisco-based OT security firm Nozomi Networks for $883 million in cash, SecurityWeek reports. Mitsubishi already owns 7% of Nozomi after participating in the company's $100 million Series E round last year. Mitsubishi says the "two companies have collaborated on innovation and go-to-market since," and "[t]his combined history informed the foundation of this transaction." The deal will mark Mitsubishi's largest acquisition ever. Following the acquisition, which is expected to close in the fourth quarter of 2025, Nozomi will continue operating in San Francisco, with an R&D base in Switzerland.
Mitsubishi said in a press release, "The acquisition of Nozomi Networks brings Mitsubishi Electric a strong and growing AI-powered, cloud-first cybersecurity software business with an award-winning track record of scalable innovation. Nozomi's world-class leadership and engineering teams, as well as its history of financial success, will strengthen Mitsubishi Electric's ability to deliver cutting-edge solutions to customers worldwide. With more than 100 years of global industrial operational technology (OT and IoT) experience, Mitsubishi Electric will support Nozomi's continued cybersecurity innovation and strong track record of business growth, as well as enable both companies to accelerate digital transformation for critical infrastructure and industrial organizations worldwide."
Cybersecurity firm SentinelOne has announced its intent to acquire AI data pipeline company Observo AI. Both companies are based in Silicon Valley. SentinelOne stated, "The deal will serve as an immediate complement and catalyst to SentinelOne’s AI SIEM and data offerings, which are already amongst the company’s fastest growing solutions, delivering a record contribution to quarterly bookings in Q2 FY26." SecurityWeek reports that SentinelOne will pay approximately $225 million in cash and stock for Observo AI.
Virginia-based security operations firm UltraViolet Cyber has acquired Black Duck’s application security testing services business. UltraViolet says the "move significantly expands UltraViolet’s application security capabilities and strengthens its position as a trusted provider to both commercial enterprises and federal agencies."
Portuguese digital banking platform ebankIT has acquired cybersecurity provider SecuritySide (also based in Portugal). The company stated, "ebankIT’s integration with SecuritySide aims to strengthen its platform in key areas such as enhanced authentication and identity protection with Multi-Factor Authentication (MFA) through TrustFactor, mobile and application security with the Mobile Protection Suite (MPS) that defends mobile apps against tampering, malware, reverse engineering, and other advanced threats."
UK-headquartered governance, risk, and compliance company Axiom GRC has acquired The DPO Centre, a London-based provider of outsourced Data Protection Officer resources. Axiom's CEO Alex Dacre stated, "Data protection is a priority for every organisation and is set to be reshaped by upcoming legislation, such as the UK’s Data Use and Access Act, alongside the rapid adoption of AI, which introduces new privacy risks. Clients across the Axiom GRC platform can now benefit from The DPO Centre’s unrivalled expertise in this critical area."
Massachusetts-headquartered IT and security outsourcing company Thrive has acquired Ohio-based technology management provider VitalCORE. Thrive stated, "Through the addition of the VitalCORE team, Thrive will now have three locations in the Midwest as the company expands across the US."
Investments and exits.
McLean, Virginia-based digital identity company ID.me has secured $340 million in a credit facility and a Series E round led by Ribbit Capital, with participation from existing investors Ares Credit funds and Moonshots Capital, as well as new investors including Positive Sum. The funding brings the company's valuation to more than $2 billion. The company says the funding "will accelerate ID.me's mission to expand access to secure, reusable digital identity and to stop AI-driven fraud."
Finnish startup IQM Quantum Computers has raised $320 million in a Series B round led by Ten Eleven Ventures, with participation from Tesi, pension funds Elo Mutual Pension Insurance and Varma Mutual Pension Insurance, strategic investors of Schwarz Group and Winbond Electronics Corporation, and sovereign wealth funds EIC and Bayern Kapital. The company's co-founder and co-CEO Dr. Jan Goetz stated, "This funding round will fuel our company growth, with an accelerated tech roadmap towards error-corrected systems from thousand to million qubits. We also focus on strong business expansion in the U.S. and other global markets based on our attractive on-premises offerings for quantum computers and the recently announced upgrade of our cloud offering."
Arlington, Virginia-based operational intelligence company Shift5 has raised $75 million in a Series C round led by Hedosophia with participation from Insight Partners, Center 15 Capital, 645 Ventures, Moore Strategic Ventures, Booz Allen Ventures, Squadra Ventures, AE Industrial, Disruptive, CSP Equity Partners, and Savano Capital Partners. The company says the funding "will drive aggressive growth across multiple fronts, including accelerating R&D for next-generation capabilities, scaling go-to-market operations, and expanding market opportunities."
Israeli endpoint security firm Koi has announced $48 million in seed and Series A funding led by Battery Ventures, Team8, Picture Capital, and NFX, with participation from Cerca Partners. Team8 partner Ori Barzilay stated, "This is a strategic investment in a strong founding team, including two alumni from our earliest portfolio company, 'Sygnia,' and in what we believe will become the new standard for securing modern endpoints."
Israeli cybersecurity tool development platform Sola Security has raised $35 million in a Series A round led by S32, with participation from M12, New Era Capital Partners, and all existing investors, including Michael Moritz, S Capital, Glilot, and Lockstep.
Indian attack surface management platform FireCompass has secured a $20 million investment from EC-Council's $100 million Cybersecurity Innovation Commitment. EC-Council noted, "This investment goes far beyond financial backing. EC-Council is mobilizing its worldwide partner network, alumni base, and enterprise research programs to accelerate FireCompass innovation and global expansion, ensuring enterprises gain access to the most advanced adversarial simulation technologies available today."
Israeli browser and corporate application security provider Red Access has raised $17 million in a Series A round led by Norwest Venture Partners, with participation from Ten Eleven Ventures, SentinelOne’s S Ventures, Elron Ventures, and Singtel Innov8 Ventures. The company says the funding will "support the expansion of Red Access’ U.S presence in 2025, alongside continued investment in R&D and key hires across sales, marketing, product, and engineering."
New York-headquartered email security startup AegisAI has emerged from stealth with $13 million in seed funding led by Accel and Foundation Capital. The company says the funding "will accelerate product development, expand the engineering team, and support go-to-market efforts as the company scales its autonomous email security platform."
New York-based deepfake prevention company Adaptive Security has received a follow-on investment from OpenAI's Startup Fund, bringing its most recent funding round to $55 million. Adaptive received $43 million in funding from a16z and OpenAI earlier this year. The company notes that "Adaptive remains the OpenAI Startup Fund's only cybersecurity investment."
Israeli machine identity security platform provider Hush Security has emerged from stealth with $11 million in seed funding led by Battery Ventures and YL Ventures. The company "will use the funding to expand engineering and accelerate global GTM efforts."
London-based agentic AI security company Geordie has emerged from stealth with $6.5 million in seed funding led by Ten Eleven Ventures and General Catalyst, with participation from angel investors.
Australian fraud prevention startup Apate.AI has raised $2.5 million in a seed round led by OIF Ventures, with participation from Investible. According to Startup Daily, the company will use the funds "for product development and international expansion, including hiring engineering and go-to-market teams, as well as expanding its partnerships with financial institutions, telcos, and governments both in Australia and key international markets."
German AI-related fraud prevention startup TrustNXT has secured €1.6 million (US$1.8 million) in pre-seed funding from High-Tech Gründerfonds (HTGF), D11Z.Ventures, and Basler AG.
Miami-headquartered threat intelligence platform provider Q6 Cyber has raised an undisclosed amount in funding from Charlesbank Capital Partners, through the investment firm's Technology Opportunities fund. Q6 says the investment "will provide growth capital aimed at accelerating the Company’s efforts to invest in and add to its product suite, expand commercial and geographic presence, and pursue strategic acquisitions to broaden capabilities."
New York-headquartered ransomware protection startup Vali Cyber has secured an undisclosed amount in an oversubscribed growth round led by Grotech Ventures. The company says the round "will support Vali Cyber’s accelerating growth by providing the funds needed to expand the engineering, threat intelligence, and go-to-market teams, while expanding partnerships with government and enterprise customers."
Las Vegas-based zero-knowledge networking firm Xiid (pronounced "exceed") has closed a strategic funding round from Ventura Capital. Xiid hasn't disclosed the amount of the investment, but says the round brings the company's total funds raised to eight figures.
Executive moves.
Binary Defense has appointed Dennis Hon as CEO. Hon previously served as Chief Revenue Officer at Red Canary, and "will lead Binary Defense through a new phase of growth as the company adopts a channel-first go-to-market strategy and expands its AI-driven security capabilities."
FS-ISAC has named Valerie Abend as its new CEO following the retirement of its former chief executive Steven Silberstein. Abend previously served as Accenture’s Global Financial Services Security Lead.
Veracode has appointed Anthony Barkley as Chief Strategy Officer and Diana Bushard as General Counsel. Barkely has previously held senior sales leadership roles at Pivotal, VMware, and Devo, while Bushard has held senior leadership roles at Archblock, Brightstar Corp., and CA Technologies.
Tanium has appointed Pedro Diaz as Chief Revenue Officer. Diaz previously "held key leadership roles at Cloud Software Group, BMC Software, and Hewlett Packard Enterprise."
Check Point has named Brett Theiss as Chief Marketing Officer. Theiss previously served as CMO at BeyondTrust and Anaplan.
MorganFranklin Cyber has named Jatin Arora as Managing Director and Head of Cyber Strategy & Governance, Risk, and Compliance (GRC). Arora previously "held senior leadership roles at HCLTech, Perot Systems (now NTT Data), and Publicis Sapient."
FTI Consulting has hired Keith Wojcieszek as a Senior Managing Director in the Cybersecurity practice within the firm's Forensic and Litigation Consulting segment. Wojcieszek most recently served as Global Head of Threat Intelligence at Kroll.
Cobalt Iron has named Joshua Pressnell as Vice President of Engineering.