Israeli Cyber Firm Varonis to Be Acquired by Proofpoint for $6.3 Billion
Translated & summarized from Calcalist by baba
Israeli cybersecurity firm Varonis is being acquired by U.S. company Proofpoint for $6.3 billion in an all-cash deal expected to close in the first half of 2027. The acquisition offers a significant premium to Varonis shareholders, reflecting its AI-driven data security platform. Varonis, which employs around 1,000 people in Israel, will transition from a public to a private company. The deal aims to enhance Proofpoint's cybersecurity offerings in the era of artificial intelligence.
The story in 6 lines · by baba
- Israeli cybersecurity firm Varonis is being acquired by U.S. company Proofpoint for $6.3 billion.
- The all-cash deal offers shareholders a 52% premium over the stock price before initial sale rumors.
- Varonis, founded in 2004, specializes in AI-driven data security and employs about 1,000 people in Israel.
- The acquisition is expected to close in the first half of 2027, pending approvals.
- Upon completion, Varonis will become a private company, delisting from Nasdaq.
- The deal aims to bolster Proofpoint's cybersecurity capabilities for the growing use of AI.
Israeli cybersecurity company Varonis, specializing in data security and artificial intelligence, is being acquired by U.S. cyber firm Proofpoint for $6.3 billion in an all-cash deal. The acquisition is expected to close in the first half of 2027, pending shareholder and regulatory approvals.
Varonis, founded in 2004, has developed a cloud-based platform for enterprise data security that uses AI to identify, classify, and protect critical data while detecting threats. The company employs approximately 2,800 people globally, with about 1,000 in Israel, where its development center is located.
The purchase price represents a significant premium for Varonis shareholders, offering $49.75 in cash per share. This is a 52% premium over the closing price on June 22, the last full trading day before initial sale rumors, and a 17% premium over the closing price on September 1, before further media reports surfaced.
Despite its technological advancements, Varonis's stock has faced weakness in recent years due to a slow transition from an older business model to a software-as-a-service (SaaS) model. The deal values Varonis at approximately 53 times its free cash flow and 8.4 times its trailing twelve-month revenue.
Following the acquisition, Varonis will become a private company, and its shares will be delisted from Nasdaq. Thoma Bravo, a private equity firm, is providing financing for the deal, committing both equity and debt funding. Varonis was advised by investment bank Goldman Sachs, and law firms Paul Hastings and Herzog Fox Neeman. Morgan Stanley advised Proofpoint.
"This is an expression of the extraordinary work of the Varonis team over two decades," said Varonis Co-founder and CEO Yaki Fitelzon. "Our mission is to secure AI and the data that powers it. By joining forces with Proofpoint, we can achieve this mission faster than ever before."
Proofpoint CEO Sumit Dhawan stated that the acquisition will enhance Proofpoint's ability to provide customers with broader intelligence on data, identities, and access, enabling them to better manage risks associated with expanding AI usage. "This is a significant step in Proofpoint's evolution into a cyber security platform built for the AI future," he added.
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