Proofpoint to Acquire Israeli Cyber Firm Varonis for $6.3 Billion

Translated & summarized from Hamal by baba

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Proofpoint, owned by Thoma Bravo, will acquire Israeli cybersecurity company Varonis Systems for approximately $6.3 billion in an all-cash deal. The acquisition, expected to close in the first half of 2027, comes amid a global increase in cybersecurity spending. Varonis, founded by Yaki Fitelzon and Ohad Korkus, offers advanced digital security services and has dual U.S.-Israeli operations. The deal represents a significant premium for Varonis shareholders.

The story in 6 lines · by baba

Proofpoint will acquire Israeli cybersecurity firm Varonis Systems for approximately $6.3 billion.
The deal offers Varonis shareholders a 52% premium over the stock's recent closing price.
The acquisition is expected to be finalized during the first half of 2027.
Varonis was founded by Yaki Fitelzon and Ohad Korkus and has operations in the U.S. and Israel.
The deal reflects a global rise in cybersecurity investments due to increased cybercrime and AI usage.
Proofpoint itself was acquired by Thoma Bravo in 2021 for about $12.3 billion.

Proofpoint to Acquire Israeli Cyber Firm Varonis 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 information 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 shares 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 budgets as organizations combat rising cybercrime and the growing use of artificial intelligence for data theft. Varonis, an Israeli-American company founded in 2005 by Yaki Fitelzon and Ohad Korkus, specializes in advanced digital security services, including data classification in cloud storage and employee behavior monitoring. Its headquarters are in Miami, with its development center located in Herzliya.

"Our mission is to secure AI and the data that feeds 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 reporting 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 previously caused a significant jump in its stock price.

Proofpoint, which develops and markets software to protect against cyberattacks, was itself acquired by Thoma Bravo in 2021 and taken private for about $12.3 billion. 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.