Full coverage· Economy· Updated 00:32

Israeli Cyber Firm Varonis to Be Acquired for $6.3 Billion

The Israeli cybersecurity company Varonis, also referred to as Veronis or Varnion, has signed a binding agreement to be acquired by the American cybersecurity firm Proofpoint for approximately $6.3 billion in an all-cash transaction. The deal, announced on Thursday, October 15, 2026, will take the company private and delist its shares from the Nasdaq exchange.

4 newsrooms · 1 language · since 15 Oct, 23:49

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What happened

01The Israeli cybersecurity company Varonis is being acquired by the American firm Proofpoint for approximately $6.3 billion in cash.
02Shareholders will receive $49.75 per share, representing a 52% premium over the closing price on June 22 before sale rumors emerged.
03The acquisition is expected to close in the first half of 2027, subject to shareholder and regulatory approvals.
04Upon completion of the transaction, the company will be delisted from the Nasdaq exchange and become a private company.
05The company employs approximately 2,800 people globally, including 1,000 employees at its development center in Israel.
06Founded in 2004 by Israeli entrepreneur Yaki Fitelzon, the firm specializes in AI-driven enterprise data security and threat detection.
07Proofpoint, owned by the private equity firm Thoma Bravo, aims to integrate the technology to protect organizations against AI-driven cyber threats.

Under the terms of the agreement, shareholders will receive $49.75 in cash per share. This purchase price represents a 52% premium over the closing share price on June 22, before initial sale rumors emerged, and a 17% premium over the closing price on September 1. The transaction values the company at approximately 53 times its free cash flow and 8.4 times its revenue for the twelve months ending in June 2026.

Founded in 2004 by Israeli entrepreneur Yaki Fitelzon, the company specializes in enterprise data security and artificial intelligence, utilizing a cloud-based platform to identify and classify critical data, reduce exposure, and detect threats. It employs approximately 2,800 people globally, including 1,000 employees at its development center in Israel. No immediate changes to the workforce have been announced.

Proofpoint, which has been owned by the private equity firm Thoma Bravo since 2021, aims to integrate the acquired data security technology to enhance its defenses against AI-driven cyber threats. The combined entity is expected to serve over 16,000 large organizations and millions of businesses worldwide. The acquisition is expected to close in the first half of 2027, subject to shareholder and regulatory approvals.

Summarized by baba from the reports of 4 newsrooms. Updated 01:41

Latest report: Arutz Sheva. Read Arutz Sheva’s original