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