In a recent announcement, Honeywell (Nasdaq: HON) revealed its plans to acquire SCADAfence, a leading provider of operational technology (OT) and Internet of Things (IoT) cybersecurity solutions. The acquisition aims to strengthen Honeywell’s capabilities in monitoring large-scale networks and safeguarding against cyber threats.
The OT cybersecurity industry is projected to exceed $10 billion in the coming years, with a particular focus on the industrial sector. Cyberattacks targeting OT systems can lead to significant downtime, resulting in substantial revenue losses for industries and critical infrastructure sectors. Thus, protecting operational systems like process control equipment in manufacturing facilities is of utmost importance.
Kevin Dehoff, President and CEO of Honeywell Connected Enterprise, emphasized the significance of safeguarding OT environments, explaining that breaches in these systems can pose safety and business continuity risks for organizations of all sizes. Honeywell has a long history of delivering and installing these systems, which led them to establish a cybersecurity business over twenty years ago. By adding SCADAfence’s product portfolio, Honeywell aims to enhance its capabilities and help customers defend against the rising cybersecurity risks.
The integration of SCADAfence’s products into the Honeywell Forge Cybersecurity+ suite will further bolster Honeywell’s software arm, Honeywell Connected Enterprise. This strategic move aligns with Honeywell’s focus on digitalization, sustainability, and OT cybersecurity SaaS offerings and solutions. By providing an end-to-end enterprise OT cybersecurity solution, Honeywell seeks to empower site managers, operations management, and CISOs with comprehensive security management and situational awareness.
The acquisition of SCADAfence not only strengthens Honeywell’s existing cybersecurity capabilities but also expands its OT cybersecurity portfolio. This expansion enables customers to operate with enhanced security, reliability, and efficiency, thus avoiding potential disruptions and catastrophic events.
According to Elad Ben Meir, CEO of SCADAfence, joining forces with Honeywell presents significant growth opportunities. The combination of SCADAfence’s top-tier OT cybersecurity products with Honeywell’s expertise in industrial software positions the merged entity to deliver advanced OT security technology to a broad customer base. SCADAfence remains committed to serving and supporting customers across various industries and geographical regions where they currently operate.
Headquartered in Tel Aviv, Israel, SCADAfence will contribute to the expansion of Honeywell’s Cybersecurity Center of Excellence in the same city. Honeywell has been implementing OT cybersecurity solutions for more than two decades, completing thousands of projects in over 130 countries. They currently employ more than 500 professionals worldwide who specialize in OT cybersecurity.
The transaction is expected to be finalized in the latter half of 2023, subject to customary closing conditions and regulatory approvals. Once completed, Honeywell will be well-positioned to address the growing demand for advanced OT cybersecurity solutions and continue its mission to help industrial organizations operate securely, reliably, and efficiently.