US co Proofpoint shopping for Varonis for $6.3b

Veteran Israeli cybersecurity agency Varonis Programs (Nasdaq: VRNS), which is traded on Nasdaq, is being acquired by US firm Proofpoint for $6.3 billion in money, representing a 52% premium over its worth in June 2026, when rumors relating to its sale first surfaced.

At present, the corporate has a market cap of $5.43 billion. The client, Proofpoint, which focuses on securing end-users and AI brokers, is held by personal fairness agency Thoma Bravo.

Employs 2,800 folks

Varonis was co-founded by its CEO and chairperson Yaki Faitelson in 2004 as a knowledge safety system throughout the enterprise cloud. It was a pioneer in detecting cyber threats by means of the usage of synthetic intelligence. Right this moment, it employs 2,800 folks, about 1,000 of whom are based mostly at its improvement heart in Israel.

Varonis’s shareholders, principally institutional buyers equivalent to BlackRock and Vanguard, will obtain $49.75 in money per share. This represents a 16% premium over the present worth. The deal values Varonis at roughly 53 occasions its free money circulation and roughly 8.4 occasions its income for the 12-month interval ending in June of this yr. Whereas the sale worth embodies a 240% premium over the corporate’s valuation in its IPO 11 years in the past, it could signify a loss for buyers who bought the inventory throughout its peak in 2021, or throughout 2024-2025.

This marks the second Israeli cybersecurity firm to be delisted from the inventory change this yr. The earlier occasion concerned CyberArk, which was acquired by Palo Alto Networks, which is listed on the New York Inventory Trade, for $25 billion. That transaction coincided with Palo Alto’s itemizing on the Tel Aviv Inventory Trade.

Complementing Proofpoint

Varonis, a dominant participant in information safety for on-premises and cloud infrastructure, has lengthy been within the midst of a transition towards public cloud infrastructure and a enterprise mannequin based mostly on month-to-month and annual software program licenses (SaaS). Nonetheless, the rise of synthetic intelligence poses dangers to corporations working beneath such a mannequin.

Acquisition by a non-public fund will make it simpler for it to adapt to the AI period, wherever obligatory even at the price of profitability, and to enrich Proofpoint (an id and person administration system) with the property it brings to the desk: cloud information safety infrastructure (DSPM – information safety posture administration). It is a quickly rising sector, that includes gamers starting from unicorns like Cyera to trade giants like Palo Alto Networks.

Varonis jumps on report of acquisition curiosity

700 CyberArk workers to lose jobs after $25b exit

“Right this moment begins an thrilling new chapter for Varonis and our clients. It is a testomony to the unbelievable work of the Varonis workforce over 20 years,” Faitelson stated. “Our mission is to safe AI and the info that powers it. By becoming a member of forces with Proofpoint, we will obtain this mission sooner than ever.

“This announcement follows a complete analysis led by a committee of impartial members of our board of administrators, which included in depth outreach to a spread of potential strategic and monetary consumers. This transaction is a superb final result for the corporate and our shareholders, representing a realization of fast, important, and sure worth nicely in extra of the risk-adjusted worth of delivering towards our standalone plan.”

Printed by Globes, Israel enterprise information – en.globes.co.il – on October 16, 2026.