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Proofpoint to Acquire Messaging Security Firm Cloudmark for $110 Million

Cybersecurity firm Proofpoint on Tuesday announced that it has agreed to acquire messaging security firm Cloudmark for $110 million in cash.

Cybersecurity firm Proofpoint on Tuesday announced that it has agreed to acquire messaging security firm Cloudmark for $110 million in cash.

Best known for its spam blocking technology, Cloudmark provides spam and malware protection to ISPs and mobile providers around the world.

Proofpoint says that Cloudmark’s Global Threat Network will be incorporated into Proofpoint’s Nexus platform, which is used to power its email, social media, mobile and SaaS security products.

Proofpoint also says that its Email Fraud Defense (EFD) and Domain Defense products will benefit from threat telemetry generated by the billions of daily emails that Cloudmark sees, along with threat intelligence around malicious domains. Proofpoint will also gain visibility into malicious SMS/text messages attempting to be sent to mobile devices around the world. 

For the time being, Proofpoint says it plans to continue Cloudmark’s service provider products with an “ongoing roadmap leveraging the combined capabilities” of both companies.

“Messaging has been the number one threat vector for years, but with ransomware and BEC, it’s never been a more urgent issue,” said Jason Donahue, Chief Executive Officer of Cloudmark. “We’re thrilled to be continuing our work to fight advanced threats in messaging as part of Proofpoint.”

The transaction is expected to close in the fourth quarter of 2017 and is subject to customary closing conditions and regulatory approvals. 

When the acquisition is complete, Cloudmark is expected to increase Proofpoint’s revenue range by $20 – $25 million to $664 – $673 million to its financial outlook for the full year 2018.

Written By

For more than 10 years, Mike Lennon has been closely monitoring the threat landscape and analyzing trends in the National Security and enterprise cybersecurity space. In his role at SecurityWeek, he oversees the editorial direction of the publication and is the Director of several leading security industry conferences around the world.

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