Honeywell announced it has agreed to acquire SCADAfence, a provider of operational technology (OT) and Internet of Things (IoT) cybersecurity solutions for monitoring large-scale networks.
SCADAfence brings proven capabilities in asset discovery, threat detection, and security governance which are key to industrial and building management cybersecurity programmes.
OT cybersecurity industry
The OT cybersecurity industry is expected to grow to over $10 billion in the next several years.
Particularly in the industrial sector, cyberattacks focused on OT systems can be a significant source of unplanned downtime, with estimates that unplanned downtime represents over a trillion dollars in lost revenue for the industrial and critical infrastructure sectors.
Safety and business continuity risks
"It is essential to protect and maintain the integrity of operational systems like process control equipment in manufacturing facilities," said Kevin Dehoff, President and Chief Executive Officer of Honeywell Connected Enterprise.
He adds, "A simple breach in the OT environment can potentially create safety and business continuity risks for organisations of all sizes. OT assets are inherently different than those in the IT environment as they are domain-specific."
Cyber security risks
Kevin Dehoff continues, "Honeywell has been delivering and installing these systems for decades, which is why we launched our cybersecurity business more than twenty years ago."
He further said, "Adding SCADAfence’s product portfolio will strengthen our capabilities and help our customers defend themselves against cyber security risks which are progressively increasing."
End-to-end enterprise OT cybersecurity solution
The SCADAfence product portfolio will integrate into the Honeywell Forge Cybersecurity+ suite
The SCADAfence product portfolio will integrate into the Honeywell Forge Cybersecurity+ suite within Honeywell Connected Enterprise, Honeywell’s fast-growing software arm with a strategic focus on digitalisation, sustainability, and OT cybersecurity SaaS offerings and solutions.
This integration will enable Honeywell to provide an end-to-end enterprise OT cybersecurity solution to site managers, operations management, and CISOs seeking enterprise security management and situational awareness.
Secure, reliable, and efficient operations
The acquisition strengthens existing capabilities in cybersecurity and bolsters Honeywell’s high-growth OT cybersecurity portfolio, helping customers operate more securely, reliably, and efficiently.
Kevin Dehoff stated, "SCADAfence is an ideal complement to Honeywell’s OT cybersecurity portfolio and, when combined with the Honeywell Forge Cybersecurity+ suite, it enables us to provide an end-to-end solution with applicability to asset, site, and enterprise across key Honeywell sectors."
Enhancing cybersecurity portfolio
"By enhancing our cybersecurity portfolio, we are accessing a growth engine and enabling our customers to operate their OT environments more securely and help to avoid disruption and possible catastrophic events," concluded Kevin Dehoff.
"We are thrilled to join Honeywell as we work towards fulfilling our mission of empowering industrial organisations to operate securely, reliably, and efficiently," said Elad Ben Meir, Chief Executive Officer of SCADAfence.
Honeywell Forge Cybersecurity+ offering
Elad Ben Meir adds, "This combination creates a significant opportunity for growth, allowing us to combine our top-tier OT cybersecurity products with one of the world's pioneering companies in industrial software."
He continues, "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 operate."
Transaction details
SCADAfence is headquartered in Tel Aviv, Israel, and will expand Honeywell’s Cybersecurity Center of Excellence in Tel Aviv. Honeywell has been implementing OT cybersecurity solutions for over twenty years, delivering thousands of projects in over 130 countries with more than 500 employees worldwide focused on OT cybersecurity.
The transaction is expected to close in the second half of 2023, subject to customary closing conditions, including receipt of certain regulatory approvals.