Proofpoint to Acquire Israeli Cybersecurity Firm Varonis for $6.3 Billion
Translated & summarized from Walla by baba
Proofpoint, backed by Thoma Bravo, will acquire Israeli-American data security company Varonis Systems for approximately $6.3 billion in an all-cash deal. The acquisition, expected to finalize in the first half of 2027, comes amid a global increase in cybersecurity spending. Varonis, founded in 2005, offers advanced digital security services, including data classification and employee behavior monitoring. The deal represents a significant exit for Varonis, which was previously taken private by Thoma Bravo in 2021.
The story in 6 lines · by baba
- Proofpoint will acquire Israeli cybersecurity firm Varonis Systems for approximately $6.3 billion.
- The deal includes a $49.75 per share cash payment, representing a 52% premium for Varonis shareholders.
- The acquisition is expected to be completed in the first half of 2027.
- Varonis, founded in 2005 by Yaki Fitelzon and Ohad Corcos, has headquarters in Miami and a development center in Herzliya.
- The deal reflects a global rise in cybersecurity budgets driven by increased cybercrime and AI usage.
- Proofpoint itself was acquired by Thoma Bravo in 2021 for about $12.3 billion.
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, 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 organizations increasing their cybersecurity budgets to combat rising cybercrime and the growing use of artificial intelligence for data theft. Varonis, founded in 2005 by Yaki Fitelzon and Ohad Corcos, 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's co-founder and CEO. Reports of the deal surfaced earlier, with Reuters reporting in September that Proofpoint was in advanced acquisition talks. In June, various media outlets reported Varonis was exploring a sale due to increased interest from private equity firms, which had previously caused its stock to surge by about 30%.
Proofpoint, which develops and markets software to help companies defend against cyberattacks, was itself acquired by Thoma Bravo in 2021 for approximately $12.3 billion, taking it private. Goldman Sachs advised Varonis on the 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.
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