Proofpoint to Buy Rival Hornetsecurity For $1 Billion

Source Credit : CNBC

On Thursday, cybersecurity firm Proofpoint announced its intention to acquire European competitor Hornetsecurity for $1 billion. This strategic move aims to enhance Proofpoint's presence in the European market as the company considers a potential return to public markets.

In recent months, the cybersecurity industry has experienced significant consolidation, as larger companies acquire smaller competitors to enhance their service offerings in response to the rising threat of AI-driven cybercrime. This trend underscores the urgent need for robust security solutions in an increasingly complex digital landscape.

In March, Google announced its intention to acquire the Israeli-founded cloud security startup Wiz for an impressive $32 billion. Meanwhile, last month, Palo Alto Networks revealed its plans to purchase Protect AI, a startup specializing in artificial intelligence-driven cybersecurity solutions. These strategic acquisitions underscore the growing importance of advanced security technologies in today's digital landscape.

Proofpoint, currently under the ownership of the prominent private equity firm Thoma Bravo, announced that its acquisition of Hornetsecurity will enhance its expertise within the managed service provider (MSP) ecosystem. This strategic move is expected to strengthen Proofpoint's position in the market and expand its capabilities in delivering comprehensive cybersecurity solutions.

Headquartered in Hannover, Germany, Hornetsecurity is a leading provider of managed cloud-based email security services. Our mission is to safeguard organizations against cyberattacks, mitigate data loss, and address compliance risks associated with Microsoft 365 and other IT infrastructures. With a commitment to excellence, we empower businesses to operate securely in an increasingly digital landscape.

Proofpoint CEO Sumit Dhawan told CNBC the deal would help “consolidate fragmented security tools into a unified platform that protects people and defends data across the global threat landscape.”

“Generative AI has fundamentally changed the threat landscape, enabling faster, more targeted, and more complex attacks,” Dhawan said in an interview. Small and medium-sized firms “are increasingly in the crosshairs” of hackers and require “integrated, high-efficacy” solutions, he added.