Proofpoint Acquires Israeli Cybersecurity Firm Varonis for $6.3 Billion

Under the terms of the agreement, Varonis shareholders will receive $49.75 per share in cash. This price represents an equity valuation of about $5.71 billion and a 52% premium over the stock's closing price on June 22, 2026, before initial reports of a potential sale emerged. Following the announcement, Varonis shares rose approximately 2.7% in after-hours trading on Wall Street.

Founded in 2004 by Yaki Faitelson and Ohad Corcus, Varonis specializes in cloud-based data protection, access management, and threat detection using artificial intelligence. The company employs about 2,800 people globally, including approximately 1,000 specialists at its research and development center in Herzliya Pituah. No immediate changes to the workforce size have been announced, and Faitelson will remain with the merged entity for 18 months in a non-executive role to assist with the transition.

The acquisition is driven by the growing need for advanced data security to protect enterprise information and AI systems from rising digital threats. The combined entity will integrate Varonis's data protection capabilities with Proofpoint's email and corporate communication security, aiming to serve over 16,000 large organizations and enterprises worldwide.