Johnson Controls acquires Tempered Networks to bring zero trust cybersecurity to connected buildings worldwide

• Acquiring Tempered Networks allows Johnson Controls to secure buildings data from edge to cloud with zero trust based Airwall technology
• Tempered Networks uses software-defined perimeters to create secure communications enabling micro-segmentation of building networks and granular access control and authentication that fortifies critical data and services
• Johnson Controls will roll out the Tempered Networks platform across deployments of its OpenBlue AI-enabled platform and will embed its technology in an increasing number of products and services

CORK, Ireland, June 23, 2022 /PRNewswire/ -- Johnson Controls (NYSE: JCI), the global leader for smart, healthy, and sustainable buildings, today acquired zero trust cybersecurity provider – Tempered Networks, based in Seattle, Washington. Tempered Networks has created 'Airwall' technology, an advanced self-defense system for buildings that enables secure network access across diverse groups of endpoint devices, edge gateways, cloud platforms and service technicians. It represents a step-change in operational technology built on secure transmission pipelines to ensure buildings data exchanges and service actions can only take place between people and devices that are continuously authenticated.

The acquisition gives Johnson Controls the capability to provide zero trust security within the fabric of its OpenBlue secure communications stack, advancing its vision of enabling fully autonomous buildings that are inherently resilient to cyberattack.

Tempered Networks Airwall technology uses the Host Identity Protocol and a cloud-based policy orchestration platform to create new overlay networks built on encrypted and authenticated communication. The policy manager (a.k.a. the conductor) enforces configured digital policies that control connections within the cloaked overlay system. The default position for the policy manager is 'zero trust', i.e., only allowing connections between continuously authenticated and authorized entities. Once a communicating device authenticates itself correctly, an encrypted tunnel is created through which data flows. The advantages of this cybersecurity technique are as follows:

• The creation of an always-on and software-defined security perimeter protecting device-to-device, device-to-cloud and device-to-user interactions.
• Airwall achieves this by using Host Identity Protocol to create a cloaked and micro-segmented network which overlays a building's existing network infrastructure, making the solution also highly cost-effective.
• A new level of authentication for connected building systems is created, allowing for greater system automation of functions such as heating and cooling, lighting, security and airflows.

"When it comes to buildings, we must create easily implementable cybersecurity defenses as we're often dealing with critical infrastructure, including assets such as data centers and hospitals," said Vijay Sankaran, vice president and chief technology officer, Johnson Controls. "Tempered Networks Airwall approach is purpose-built for our sector as it's designed around principles of zero trust, securing device communications as data moves between devices and the cloud – so enabling remote building optimization in the most trusted way possible."

Tempered Networks Airwall technology is being integrated into Johnson Controls OpenBlue platform which is increasingly recognized as a leading smart building software platform with advanced AI-enabled building management capabilities¹. OpenBlue provides a flexible computing approach for converging building technologies and making those technologies more insightful, powerful, and optimized through edge AI and through full machine learning in the cloud. The ultimate goal is to make all buildings smarter, healthier and more sustainable.

"Digital transformation is the primary way we'll make the world's buildings more autonomous and resilient," said Bryan Skene, chief technology officer, Tempered Networks. "Being acquired by Johnson Controls allows us to fully integrate our Airwall technology into their software stack, providing an advanced security platform for a range of edge to cloud applications. Our ambition, now that we're part of Johnson Controls, is that building systems everywhere can be managed from anywhere and remain secure from cyber threats."

The acquisition of Tempered Networks builds on the previously announced selection of the company as a core component of Johnson Controls OpenBlue platform and services. The integration of Tempered Networks' security technology further builds on other recent acquisitions including Foghorn whose technology is taking the company's edge AI capability to new levels for compute-constrained devices. It also complements partnerships with Pelion and DigiCert to provide advanced secure device management and digital trust for smart building technology.

Financial terms of the transaction were not disclosed.

To learn more about Johnson Controls' approach to cybersecurity, please visit www.johnsoncontrols.com/cybersolutions.

See an explanation video for Tempered Networks Airwall technology here.

At Johnson Controls (NYSE:JCI), we transform the environments where people live, work, learn and play. As the global leader in smart, healthy and sustainable buildings, our mission is to reimagine the performance of buildings to serve people, places and the planet.  

Building on a proud history of more than 135 years of innovation, we deliver the blueprint of the future for industries such as healthcare, schools, data centers, airports, stadiums, manufacturing and beyond through OpenBlue, our comprehensive digital offering.  

Today, with a global team of 100,000 experts in more than 150 countries, Johnson Controls offers the world's largest portfolio of building technology and software as well as service solutions from some of the most trusted names in the industry.  

Visit www.johnsoncontrols.com for more information and follow @Johnson Controls on social platforms. 

Tempered Airwall protects critical infrastructure with the industry's only, truly native Zero Trust platform. Think of us as the virtual air gap protecting the systems in a smart building, the medical devices in a hospital, the machines in a factory floor. These are all use cases we solve today. Airwall helps you easily secure things and facilities while still allowing you to monitor and connect to them remotely, from anywhere. For more information visit https://tempered.io.

Johnson Controls International plc has made statements in this communication regarding the acquisition of Tempered Networks that are forward-looking and therefore are subject to risks and uncertainties. All statements in this document other than statements of historical fact are, or could be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In this communication, statements regarding Johnson Controls' future financial position, sales, costs, earnings, cash flows, other measures of results of operations, synergies and integration opportunities, capital expenditures and debt levels are forward-looking statements. Words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "forecast," "project" or "plan" and terms of similar meaning are also generally intended to identify forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Johnson Controls cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond Johnson Controls' control, that could cause the expected impact of the acquisition of Tempered Networks to differ materially from those expressed or implied by such forward-looking statements, include, among others, risks related to the ability to realize the anticipated benefits of the acquisition, including the possibility that expected synergies will not be realized or will not be realized within the expected time frame; delays in the successful integration of Tempered Networks and its technologies; unfavorable reaction to the acquisition by customers, competitors, suppliers and employees, disruption from the transaction making it more difficult to maintain business and operational relationships; significant transaction costs; and unknown liabilities.

Other factors that could cause Johnson Controls' actual results to differ materially from those expressed include, among others risks related to: Johnson Controls ability to manage general economic, business, capital market and geopolitical conditions, including global price inflation, shortages impacting the availability of raw materials and component products and the current conflict between Russia and Ukraine; Johnson Controls ability to manage the impacts of natural disasters, climate change, pandemics and outbreaks of contagious diseases and other adverse public health developments, such as the COVID-19 pandemic; the strength of the U.S. or other economies; changes or uncertainty in laws, regulations, rates, policies or interpretations that impact Johnson Controls business operations or tax status; the ability to develop or acquire new products and technologies that achieve market acceptance and meet applicable regulatory requirements; changes to laws or policies governing foreign trade, including economic sanctions, increased tariffs or trade restrictions; maintaining the capacity, reliability and security of Johnson Controls enterprise information technology infrastructure; the ability to manage the lifecycle cybersecurity risk in the development, deployment and operation of Johnson Controls digital platforms and services; the risk of infringement or expiration of intellectual property rights; any delay or inability of Johnson Controls to realize the expected benefits and synergies of recent portfolio transactions; the outcome of litigation and governmental proceedings; the ability to hire and retain senior management and other key personnel; the tax treatment of recent portfolio transactions; significant transaction costs and/or unknown liabilities associated with such transactions; fluctuations in currency exchange rates; labor shortages, work stoppages, union negotiations, labor disputes and other matters associated with the labor force; and the cancellation of or changes to commercial arrangements . A detailed discussion of risks related to Johnson Controls' business is included in the section entitled "Risk Factors" in Johnson Controls' Annual Report on Form 10-K for the 2021 fiscal year filed with the SEC on November 15, 2021, which is available at www.sec.gov and www.johnsoncontrols.com under the "Investors" tab. The description of certain of these risks is supplemented in Item 1A of Part II of Johnson Controls' subsequently filed Quarterly Reports on Form 10-Q. Shareholders, potential investors and others should consider these factors in evaluating the forward-looking statements and should not place undue reliance on such statements. The forward-looking statements included in this communication are made only as of the date of this document, unless otherwise specified, and, except as required by law, Johnson Controls assumes no obligation, and disclaims any obligation, to update such statements to reflect events or circumstances occurring after the date of this communication.

¹https://www.johnsoncontrols.com/media-center/news/press-releases/2022/02/16/johnson-controls-receives-market-leading-scores-for-its-integrated-ai-infused-solutions

SOURCE Johnson Controls International plc

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