Israeli Cyber Firm Varonis Sold for $6.3 Billion
Translated & summarized from Bizportal by baba
Israeli cybersecurity firm Varonis Systems has agreed to be acquired by American company Prophsee for $6.3 billion in cash. The deal, which includes a 52% premium on Varonis's stock price, comes after a period of market volatility for the company. Varonis, founded in 2005, specializes in data security and will transition to private ownership upon the deal's expected completion in the first half of 2027. The acquisition is backed by investment firm Thoma Bravo.
The story in 6 lines · by baba
- Varonis Systems, an Israeli cybersecurity firm, is being acquired by Prophsee for $6.3 billion in cash.
- The acquisition price of $49.75 per share represents a 52% premium over Varonis's stock price before sale rumors.
- Varonis, founded in 2005, specializes in securing sensitive organizational data and will become a private company.
- The deal is expected to close in the first half of 2027, pending regulatory and shareholder approvals.
- The acquisition is backed by investment firm Thoma Bravo, which previously bought Prophsee for $12.3 billion.
- Varonis's stock experienced significant volatility, including a 30% drop in October 2025 due to disappointing results.
Israeli cybersecurity company Varonis Systems is being acquired by American firm Prophsee for approximately $6.3 billion in cash. The deal, which values Varonis at $49.75 per share, represents a 52% premium over its June stock price before sale rumors began. Prophsee is backed by investment firm Thoma Bravo, which purchased Prophsee itself in 2021 for $12.3 billion.
Varonis, founded in 2005 by Yaki Fitelzon and Ohad Korokus, specializes in helping organizations manage and secure sensitive data by identifying it, controlling access, detecting suspicious behavior, and reducing unnecessary permissions. The acquisition comes after a challenging period for Varonis, marked by a sharp stock decline, slowed growth, and a lengthy transition to a cloud-based software-as-a-service model.
The deal is expected to close in the first half of 2027, subject to shareholder and regulatory approvals. Varonis, which employs about 2,800 people globally, including 1,000 in Israel, will become a private company. Prophsee, focused on protecting email, users, and identities, aims to integrate Varonis's capabilities to offer a more comprehensive security solution, especially as demand for enterprise data protection grows with the rise of AI.
Financing for the acquisition will come from Thoma Bravo's capital and loans, with the Ontario Teachers' Pension Plan also expected to invest in Prophsee. Varonis's stock has experienced volatility, including a more than 30% drop in October 2025 following disappointing earnings and lowered forecasts. The transition to cloud subscriptions initially impacted short-term revenues and made growth assessment difficult for investors.
Upon closing, Varonis's stock will be delisted from Nasdaq. The acquisition price is roughly 6.8 times higher than Varonis's initial IPO price in February 2014, adjusted for a 2021 stock split. The current deal price reflects a premium of 17% over the stock price in early September, before further acquisition reports surfaced.
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