Economy · News
Proofpoint to Acquire Data-Security Firm Varonis for $6.3 Billion
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In brief
Proofpoint, the email-security company owned by Thoma Bravo, agreed on October 15, 2026, to buy data-security firm Varonis Systems for about $6.3 billion in cash. Varonis shareholders will receive $49.75 per share, a 52% premium over the stock's price before sale talks were first reported in June 2026.
Proofpoint said on October 15, 2026, that it had signed a definitive agreement to acquire Varonis Systems, a Nasdaq-listed data-security company, in an all-cash deal valued at approximately $6.3 billion. Under the agreement, Varonis shareholders will receive $49.75 per share in cash, according to the companies' joint announcement and a filing Varonis made with the U.S. Securities and Exchange Commission.
The per-share price represents a 52% premium over Varonis' closing price of $32.71 on June 22, 2026 — the last trading day before reports of a possible sale first surfaced — and a 17% premium over the September 1, 2026 closing price of $42.35, the SEC filing states.
Who is involved
Proofpoint, based in Sunnyvale, California, is a cybersecurity company focused on protecting people and organizations from threats arriving through email, cloud services and collaboration platforms. It is a portfolio company of private-equity firm Thoma Bravo. Varonis, headquartered in New York, builds software that maps where an organization's sensitive data sits, who can access it and how it is used.
Varonis co-founder and chairman Yaki Faitelson serves as the company's chief executive. Proofpoint is led by chief executive Sumit Dhawan. The deal was unanimously approved by Varonis' board of directors, the companies said.
Why now: data and AI security
According to CyberScoop's reporting, Proofpoint CEO Sumit Dhawan said that keeping data safe from misuse — whether by employees or by AI agents acting inside a company's systems — has become organizations' top priority as they try to get the most out of artificial intelligence. Proofpoint's own press release frames the deal as combining its threat intelligence about people with Varonis' visibility into enterprise data to address risks created by AI systems operating inside corporate networks.
This transaction is an excellent outcome for the company and our shareholders, representing a realization of immediate, significant, and certain value…
According to CyberScoop's reporting, Proofpoint says it has more than 3.4 million customers, scans roughly 2.37 trillion emails and ingests about 410 billion security events annually — figures it plans to combine with Varonis' data-mapping technology.
Deal structure and financing
Thoma Bravo is providing committed equity financing and has secured debt financing commitments to fund the acquisition, the companies said. Ontario Teachers' Pension Plan has separately agreed to make an additional investment in Proofpoint in connection with the transaction. Varonis will delist from Nasdaq and become a private company once the deal closes, according to the SEC filing.
The transaction is subject to approval by Varonis shareholders and to customary regulatory clearances. The companies expect the deal to close in the first half of 2027.
| Metric | Figure | Source |
|---|---|---|
| Total deal value | ~$6.3 billion | Proofpoint press release / SEC filing |
| Price per share | $49.75 cash | SEC filing (Varonis 8-K) |
| Premium vs. June 22, 2026 close ($32.71) | 52% | SEC filing |
| Premium vs. Sept 1, 2026 close ($42.35) | 17% | SEC filing |
| LTM revenue multiple | 8.4x | SEC filing |
| LTM free cash flow multiple | 53x | SEC filing |
| Expected closing | First half of 2027 | Proofpoint press release |
Industry context
Both companies had already been acquisitive before this deal. According to CyberScoop's reporting, Proofpoint acquired AI-security startup Acuvity in February 2026 and bought Microsoft 365 security specialist Hornetsecurity for more than $1 billion. Varonis had acquired AI-security firm AllTrue.ai for $150 million.
Advisers on the deal include Goldman Sachs and law firm Paul Hastings for Varonis, and BofA Securities, Morgan Stanley, JPMorgan and UBS and Mizuho alongside law firm Kirkland & Ellis for Proofpoint, according to the SEC filing.
What happens next
The deal still requires approval by Varonis shareholders and clearance from regulators before it can close, which the companies expect in the first half of 2027.
Questions
- How much is Proofpoint paying for Varonis?
- Proofpoint agreed to pay about $6.3 billion in cash, or $49.75 per share, for Varonis Systems, according to the companies' joint announcement and a Varonis SEC filing.
- What premium does the price represent?
- The $49.75 per-share price is a 52% premium over Varonis' June 22, 2026 closing price of $32.71, the last trading day before sale talks were first reported, and a 17% premium over the September 1, 2026 closing price of $42.35, per the SEC filing.
- Who owns Proofpoint?
- Proofpoint is a portfolio company of private-equity firm Thoma Bravo, which is providing equity and debt financing commitments for the Varonis acquisition.
- When is the deal expected to close?
- The companies expect the transaction to close in the first half of 2027, subject to approval by Varonis shareholders and regulatory clearances, according to Proofpoint's press release.
- What does Varonis do?
- Varonis Systems builds software that identifies where an organization's sensitive data is stored, who can access it, and how it is used, positioning it as a data-security company.
Sources
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