Security Experts:

Thoma Bravo Buys Proofpoint in $12.3 Billion All-Cash Deal

Enterprise security vendor Proofpoint (NASDAQ: PFPT) has agreed to be acquired by private equity firm Thoma Bravo in an all-cash transaction that values Proofpoint at approximately $12.3 billion.

As part of the deal, Proofpoint will exit the public markets and become a private company within Thoma Bravo’s growing stable of enterprise cybersecurity companies.

Proofpoint logoUnder the terms of the agreement, Proofpoint shareholders will receive $176.00 per share in cash, representing a premium of approximately 34 percent over Proofpoint’s closing share price on April 23, 2021.

Proofpoint, an entrenched security vendor known for its enterprise email security products, generates about $1 billion in revenue annually.

Proofpoint is facing intense competition from a wave of well-funded startups looking to eat away at its customer base.

Proofpoint itself has been aggressive on the acquisition front, snapping up companies like Meta Networks, ObserveIT, Wombat and Cloudmark to expand beyond e-mail security offerings.

Proofpoint chief executive Gary Steele pointed to this expansion and scale of the company’s product lines as reasons the company hit the billion-dollar revenue mark. 

“We believe that as a private company, we can be even more agile with greater flexibility to continue investing in innovation, building on our leadership position and staying ahead of threat actors,” Steele added.

The deal is expected to close in the third quarter of 2021.

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Ryan Naraine is Editor-at-Large at SecurityWeek and host of the popular Security Conversations podcast series. He is a journalist and cybersecurity strategist with more than 20 years experience covering IT security and technology trends. Ryan has built security engagement programs at major global brands, including Intel Corp., Bishop Fox and Kaspersky GReAT. He is a co-founder of Threatpost and the global SAS conference series. Ryan's career as a journalist includes bylines at major technology publications including Ziff Davis eWEEK, CBS Interactive's ZDNet, PCMag and PC World. Ryan is a director of the Security Tinkerers non-profit, and a regular speaker at security conferences around the world. Follow Ryan on Twitter @ryanaraine.