Proofpoint to Acquire Israeli Cyber Firm Varonis Systems for $6.3 Billion

By וואלה כסף

Translated & summarized from Walla by baba

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Hebrew · 15 newsrooms covering

Proofpoint, backed by Thoma Bravo, is acquiring Israeli-American data security firm Varonis Systems for approximately $6.3 billion in an all-cash deal. The acquisition, expected to finalize in the first half of 2027, highlights increased global investment in cybersecurity amid rising cyber threats and AI-driven data theft. Varonis, co-founded by Yaki Fitelzon and Ohad Corcus, offers advanced data security solutions. The deal comes after Varonis explored a potential sale, and Proofpoint itself was taken private by Thoma Bravo in 2021.

The story in 6 lines · by baba

Proofpoint will acquire Israeli cyber firm Varonis Systems for $6.3 billion in cash.
The deal represents a 52% premium on Varonis's stock price prior to sale rumors.
The acquisition is expected to be completed by the first half of 2027.
Varonis, founded in 2005, specializes in data security and AI protection.
Proofpoint, the acquiring company, was itself acquired by Thoma Bravo in 2021.
Goldman Sachs advised Varonis, while several major banks advised Proofpoint.

Proofpoint to Acquire Israeli Cyber Firm Varonis Systems for $6.3 Billion — Editorial illustration generated by baba News, not a photograph of the event.

Cybersecurity firm Proofpoint, owned by private equity firm Thoma Bravo, has agreed to acquire Israeli data security company Varonis Systems for approximately $6.3 billion in cash. Under the terms of the deal, Varonis shareholders will receive $49.75 per share, representing a 52% premium over the stock's closing price on June 22, the day before initial reports of a potential sale emerged. The current offer values Varonis at $5.71 billion, and its stock rose about 2.7% in after-hours trading following the announcement.

The acquisition, expected to close in the first half of 2027, reflects a global trend of increased cybersecurity spending by organizations to combat rising cybercrime and the growing use of artificial intelligence for data theft. Varonis, founded in 2005 by Yaki Fitelzon and Ohad Corcus, is an Israeli-American company with headquarters in Miami and a development center in Herzliya. It specializes in advanced digital security services, including data classification in cloud storage and employee behavior monitoring.

"Our mission is to secure AI and the data that fuels it. By joining forces with Proofpoint, we can achieve this goal faster than ever before," stated Fitelzon, Varonis co-founder and CEO. Reports of the deal surfaced earlier, with Reuters indicating in September that Proofpoint was in advanced acquisition talks. In June, various media outlets reported Varonis was exploring a sale due to interest from private equity firms, which had caused a significant jump in its stock price at the time.

Proofpoint itself was acquired by Thoma Bravo in 2021 for about $12.3 billion, taking it private. Goldman Sachs advised Varonis on the current transaction, while BofA Securities, Morgan Stanley, J.P. Morgan, UBS, and Mizuho Securities USA advised Proofpoint. Varonis also announced it would release its third-quarter financial results on November 3 but would not hold an investor call due to the pending acquisition.