Cybersecurity firm Proofoint announced on Saturday that it has agreed to acquire ObserveIT, a Boston, Mass.-based provider of insider threat management solutions.
Under the terms of the agreement, Proofoint will pay $225 million in cash to acquire ObserveIT in a deal that is expected to close before the end of 2019.
According to Proofpoint, the combination of ObserveIT’s endpoint agent technology and data risk analytics with Proofpoint’s information classification, threat detection, and intelligence, will give enterprises insights into user activity across the enterprise.
Additionally, Proofpoint said it would invest in ObserveIT’s insider threat management solution, which helps security teams detect, investigate, and prevent insider threat incidents.
The integrated solution will available some time in 2020, and will become part of the Proofpoint information protection suite.
ObserveIT has raised more than $50 million in funding since being founded in 2006. While the company’s recent revenue metrics have not been publicly disclosed, it has been burning through cash at an annualized expense run rate of more than $40 million as Q3 of 2019. Leading up to the acquisition, the company had more than 1,900 customers around the world, and previously announced a 70 percent increase in Annual Recurring Revenue (ARR) over 2018.
Investors in ObserveIT include Bain Capital Ventures, Spring Lake Equity Partners and NightDragon Security, the cybersecurity investment firm launched by industry veteran Dave DeWalt.