Phosphorus deal gives Dragos a $50bn market opportunity

Dragos

Dragos, the global leader in cybersecurity for operational technology (OT) environments, has acquired Phosphorus, a connected device security specialist, in a move designed to extend its protection across what the company calls the Extended Operational Technology, or xOT, environment.

The acquisition brings Phosphorus’s connected device capabilities into the Dragos Platform, giving customers broader visibility and automated remediation across OT systems and the vast network of connected devices now woven throughout critical infrastructure. Phosphorus’s president and COO, Sonu Shankar, will remain in post as a general manager within Dragos as the two businesses integrate in phases.

Phosphorus’s platform identifies devices across OT and enterprise environments without requiring significant changes to existing architecture, offering organisations continuous situational awareness, automated password management, firmware updates, certificate handling, and configuration hardening. These capabilities address compliance requirements and help reduce risk at scale across what Dragos terms the full xOT environment — the combination of traditional OT systems and the connected devices that have reshaped how critical infrastructure operates.

In the near term, Dragos customers will gain enhanced asset visibility and integrated device intelligence, with automated remediation workflows and a unified platform experience to follow. Existing Phosphorus customers will continue to receive full support, with access to Dragos’s wider offerings expanding as integration progresses.

Dragos describes the xOT environment as an expansion of traditional OT boundaries, arguing that power grids, pipelines, manufacturing facilities, and data centres now rely on a diverse mix of connected devices that adversaries are already exploiting. The company positions this acquisition as a deliberate effort to match its defensive capabilities to this expanded attack surface.

With Phosphorus in the fold, Dragos estimates its total addressable market at more than $50bn. The deal follows the company’s October 2024 acquisition of Network Perception, which added OT network visibility, segmentation validation, and compliance capabilities to the Dragos platform. Dragos characterises the two acquisitions as complementary: Network Perception maps and secures network architecture, while Phosphorus secures the devices running on it.

Dragos CEO and co-founder Robert M. Lee said, “The connected devices you find everywhere in critical infrastructure are largely invisible to the cybersecurity programs that protect operational environments. With Phosphorus, we close that gap and secure xOT, the full environment that matters.”

Phosphorus president and COO Sonu Shankar said, “We built Phosphorus to solve the connected device problem — the unmanaged devices, the default credentials, the firmware no one was updating. Together with Dragos, we can solve it with a depth and scale that wasn’t possible before. That’s what the next generation of OT cybersecurity looks like.”

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