Varonis Co-Founder Eyes Israeli Cyber Acquisitions After $6.3 Billion Sale

Varonis, a cybersecurity firm founded in 2005, has been acquired by American company Proofpoint for $6.3 billion in cash. Yaki Fitelzon, Varonis's co-founder and CEO, stated that the company, which began during a difficult period for the cyber industry, is projected to reach $1 billion in revenue next year. Varonis, registered in the U.S. with most of its employees there, maintains a significant development center in Israel employing 1,000 people. Fitelzon, who returned to Israel in 2024 due to the war, previously worked at NetApp and served in Unit 81. He explained the company's focus on securing data, especially with the rise of AI, and noted that the acquisition by Proofpoint, a company with a similar revenue run rate but a different product focus, presents an opportunity to build a larger entity. Fitelzon expressed optimism about future acquisitions of Israeli cyber companies, contributing to the local economy. While details about employee integration are still being finalized, there is interest in Varonis's development and marketing teams. Fitelzon also reflected on the benefits of being a public company, such as controlling one's destiny and bringing economic prosperity, contrasting it with the nature of an exit, though he expressed pride in Varonis's resilience and growth to a billion-dollar revenue run rate.