Honeywell to enhance OT cybersecurity portfolio with SCADAfence acquisition
Honeywell has declared its intention to acquire SCADAfence, a recognized provider of operational technology (OT) and Internet of Things (IoT) cybersecurity solutions.
The purchase will enable Honeywell to strengthen its OT cybersecurity portfolio by incorporating SCADAfence’s expertise in threat detection, asset discovery, and security governance, especially valuable to industrial and building management cybersecurity programs.
Given the projected growth of the OT cybersecurity industry, expected to exceed $10 billion in the upcoming years, this acquisition holds significant potential. Cyberattacks on OT systems in the industrial sector can result in substantial unplanned downtime, a serious issue as lost revenue in these sectors due to downtime is estimated at over a trillion dollars.
The SCADAfence product line will be integrated into Honeywell Forge Cybersecurity+, part of Honeywell Connected Enterprise, Honeywell’s rapidly expanding software division. This division places strategic emphasis on digitalization, sustainability, and OT cybersecurity SaaS offerings and solutions.
By providing a comprehensive OT cybersecurity solution, Honeywell will better assist site managers, operations management, and CISOs in achieving enterprise security management and situational awareness.
Honeywell to acquire SCADAfence. Photo courtesy of Scott Ritchie/Wikimedia Commons.
Kevin Dehoff — Honeywell Connected Enterprise president and CEO said: “It is essential to protect and maintain the integrity of operational systems like process control equipment in manufacturing facilities. A simple breach in the OT environment has the potential to create safety and business continuity risk for organizations of all sizes. OT assets are inherently different than those in the IT environment as they are domain specific.
“Honeywell has been delivering and installing these systems for decades, which is why we launched our cybersecurity business more than twenty years ago. Adding SCADAfence’s product portfolio will strengthen our capabilities and help our customers defend themselves against cyber security risks which are progressively increasing.”
SCADAfence, headquartered in Tel Aviv, Israel, will boost Honeywell’s Cybersecurity Center of Excellence in the same city. Honeywell has been developing and implementing OT cybersecurity solutions for over two decades, managing thousands of projects in over 130 countries with a dedicated team of more than 500 employees.
Elad Ben Meir — SCADAfence CEO said: “We are thrilled to join Honeywell as we work towards fulfilling our mission of empowering industrial organizations to operate securely, reliably and efficiently. This combination creates significant opportunity for growth, allowing us to combine our top-tier OT cybersecurity products with one of the world’s leading companies in industrial software.
“With this acquisition, we are poised to deliver some of the most advanced OT security technology to Honeywell’s broad customer base, bolstering the comprehensive Honeywell Forge Cybersecurity+ offering. We remain committed to proactively serving and supporting our customers across all verticals and geographies where we currently operate.”
The acquisition is expected to close in the second half of 2023, following the receipt of certain regulatory approvals and other customary closing conditions.