Proofpoint to Acquire Hornetsecurity in Major Cybersecurity Deal
Cybersecurity firm Proofpoint recently revealed plans to acquire Hornetsecurity, a security provider known for its expertise in Microsoft 365 solutions. The acquisition is valued at around $1 billion.
About Hornetsecurity
Founded in 2007, Hornetsecurity is based in Hanover, Germany, and has secured multiple funding rounds over its operational years. The company last raised capital in 2022 through a growth round, led by private equity firm TA Associates, while also being backed by PSG Equity and Verdane.
Strategic Implications of the Acquisition
This acquisition occurs against a backdrop of speculation regarding Proofpoint’s potential return to public markets. Initially going public in 2012, Proofpoint was taken private by Thoma Bravo in a significant deal worth $12.3 billion in 2021. If the IPO materializes, incorporating Hornetsecurity’s capabilities could enhance Proofpoint’s market appeal considerably.
Financial Highlights
Currently, Hornetsecurity reports an impressive $160 million in annual recurring revenue, with year-over-year growth exceeding 20%. This financial strength positions the acquisition as a potentially lucrative move for Proofpoint.
Current Landscape of Cybersecurity Funding
The acquisition also signifies a sustained period of growth within the cybersecurity sector. Recent data from Crunchbase indicates that venture capital investment in cybersecurity startups surpassed $2.7 billion in the first quarter, marking a 29% increase from the previous quarter. This vibrant funding environment was further highlighted in March with Alphabet’s announcement of its planned acquisition of Wiz, a cloud security startup, for a record $32 billion.
Conclusion
The Proofpoint-Hornetsecurity deal highlights significant trends within the cybersecurity landscape and underscores growing investor interest in firms equipped to address contemporary security challenges, particularly in cloud solutions.