Honeywell is acquiring SCADAfence, an operational technology (OT) and internet of things (IoT) security startup, in a move to enhance its Forge Cybersecurity+ suite and OT security portfolio.

Founded in 2014, SCADAfence is headquartered in Tel Aviv, Israel, and will expand Honeywell's Cybersecurity Center of Excellence in the city. The startup offers network monitoring, asset discovery, governance, remote access and IoT device security for large-scale networks, the vendor claims.

Honeywell hasn’t revealed the financial terms of the deal, but SCADAfence has raised $39.5 million in six rounds of funding, including the most recent $16 million venture series round in March 2023. The acquisition is expected to close in the second half of this year, subject to customary closing conditions including receipt of certain regulatory approvals.

Upon closing, Honeywell plans to integrate SCADAfence’s technologies into its Forge Cybersecurity+ suite within Honeywell Connected Enterprise, which is its software arm focusing on digitalization, sustainability and OT cybersecurity software-as-a-service (SaaS) solutions.

The combination aims to enable Honeywell to provide an end-to-end enterprise OT security solution to site managers, operations management and CISOs who look for security management and situational awareness, the tech company claims.

SCADAfence “enables us to provide an end-to-end solution with applicability to asset, site and enterprise across key Honeywell sectors," Kevin Dehoff, president and CEO at Honeywell Connected Enterprise, said in a statement. "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."

Honeywell noted the OT security market is expected to grow to more than $10 billion in the next few years.

"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,” Dehoff argues.

Honeywell has been investing in OT security solutions for more than two decades, delivering thousands of projects in more than 130 countries, it claims. The company currently has more than 500 employees worldwide focusing on OT security.

“Adding SCADAfence's product portfolio will strengthen our capabilities and help our customers defend themselves against cyber security risks which are progressively increasing," Dehoff said.