Dragos acquires Phosphorus to widen OT security reach

Deal overview

Dragos has acquired Phosphorus, broadening its reach across connected devices in operational environments.

The deal adds Phosphorus's device discovery and remediation software to Dragos's operational technology security platform. Together, the companies are targeting what Dragos calls Extended Operational Technology, or xOT, which includes both traditional OT systems and connected devices used across industrial and other operational networks.

Operational networks in sectors such as energy, manufacturing, water, transport, and data centres now rely on a mix of industrial control systems, sensors, cameras, building systems, and other connected equipment. As cyber threats increasingly move across both legacy OT assets and newer digital devices, the area security teams must monitor has expanded.

Device scope

According to Dragos, Phosphorus's technology gives customers more detailed visibility into those devices and tools to address issues such as default passwords, outdated firmware, certificate problems, and weak configurations. The software integrates with existing infrastructure without requiring major architectural changes.

In the near term, Dragos customers are expected to gain broader asset visibility and added device intelligence. Automated remediation workflows and a unified platform experience are expected to follow as the integration progresses.

Integration plan

Existing Phosphorus customers will continue to be supported during that process. Sonu Shankar will remain in charge of the Phosphorus business as General Manager within Dragos under what was described as a phased integration.

Robert M. Lee, Chief Executive Officer and Co-Founder of Dragos, outlined the rationale for the deal in a statement on the acquisition.

"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," said Robert M. Lee, Chief Executive Officer and Co-Founder of Dragos.

Strategy expansion

Phosphorus has focused on identifying unmanaged connected devices and automating tasks that security teams often struggle to carry out at scale. Those tasks include rotating passwords, updating firmware, managing certificates, and hardening device settings. In operational environments, where downtime can be costly and equipment can remain in service for long periods, those functions can be difficult to standardise.

The transaction also extends Dragos's broader acquisition strategy. In October 2024, the company bought Network Perception, adding software for OT network visibility, segmentation validation, and compliance. That deal improved its ability to map and secure network architecture, while the Phosphorus acquisition is intended to secure the devices operating on those networks.

Together, the two acquisitions point to a wider effort by Dragos to cover more cyber risk in industrial settings. Rather than focusing only on control systems and network monitoring, it is moving further into device-level security across operational estates that often include large numbers of unmanaged or poorly documented assets.

Dragos now estimates its total addressable market at more than USD $50 billion. The company operates globally and serves customers across critical infrastructure sectors, including power, pipelines, manufacturing, and water systems.

Sonu Shankar, President and Chief Operating Officer of Phosphorus, described the company's focus in his remarks on the deal.

"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," said Shankar.