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Cybersecurity agency Proofpoint introduced Thursday it’ll purchase European rival Hornetsecurity for $1 billion to strengthen its European presence because it explores a return to public markets.
The deal marks the only largest acquisition in Proofpoint’s historical past.
The cybersecurity business has seen heightened consolidation in current months, with firms snapping up smaller rivals to bolster their choices in an period of AI-fueled cybercrime.
In March, Google introduced a deal to accumulate Israeli-founded cloud safety startup Wiz for $32 billion, whereas final month Palo Alto Networks stated it was shopping for AI-focused cyber startup Shield AI.
Proofpoint, which is presently owned by non-public fairness large Thoma Bravo, stated the deal to purchase Hornetsecurity would assist deepen its experience within the managed service supplier (MSP) ecosystem.
Headquartered in Hannover, Germany, Hornetsecurity makes a speciality of managed cloud-based electronic mail safety companies to assist defend companies from cyberattacks, information loss, and compliance dangers related to Microsoft 365 and different IT infrastructure.
Proofpoint CEO Sumit Dhawan instructed CNBC the deal would assist “consolidate fragmented safety instruments right into a unified platform that protects folks and defends information throughout the worldwide menace panorama.”
“Generative AI has essentially modified the menace panorama, enabling quicker, extra focused, and extra complicated assaults,” Dhawan stated in an interview. Small and medium-sized companies “are more and more within the crosshairs” of hackers and require “built-in, high-efficacy” options, he added.
Path to IPO
Proofpoint’s boss instructed CNBC in October final 12 months that the corporate was exploring exterior funding in addition to mergers and acquisitions of smaller cybersecurity companies with an intention to return to the general public markets in 2026. The corporate went non-public in 2021 in a $12.3 billion acquisition by non-public fairness agency Thoma Bravo.
“Hornetsecurity brings very sturdy enterprise to Proofpoint focusing on a brand new market phase of MSPs and diversifies our routes to market,” Dhawan stated.
“It contributes considerably to our earnings and money movement going ahead, which makes us a good stronger firm and enterprise as we discover a return to public markets,” he added.
Dhawan stated that whereas there may be “nothing new” to share on Proofpoint’s IPO plans for now, “we stay within the IPO market and can discover public markets once we really feel the time is true.”
Hornetsecurity serves greater than 125,000 small to medium-sized companies and has greater than 700 staff, in response to a press launch. Proofpoint has over 4,500 staff and counts 85% of the Fortune 100 as clients.
The deal is predicted to shut within the second half of 2025, topic to customary closing circumstances.
