Proofpoint to Acquire Hornetsecurity in $1 Billion Deal
Proofpoint announces acquisition of Hornetsecurity, a Microsoft 365-focused cybersecurity firm, in a deal worth approximately $1 billion.
Cybersecurity firm Proofpoint has revealed plans to acquire Hornetsecurity, a company that specializes in securing Microsoft 365 environments, for around $1 billion.
Founded in 2007 and based in Hanover, Germany, Hornetsecurity has grown steadily, backed by investors like TA Associates, PSG Equity, and Verdane. The company currently generates over $160 million in annual recurring revenue and has maintained a growth rate exceeding 20% year over year.
This acquisition could be a strategic move for Proofpoint as speculation grows around a potential public offering. The company first went public in 2012 but was taken private in 2021 through a $12.3 billion deal led by private equity firm Thoma Bravo.
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Proofpoint has a strong track record of acquisitions, with over 25 companies added to its portfolio. Its most recent purchase was the data security platform Normalyze in October.
Adding Hornetsecurity to its lineup enhances Proofpoint’s capabilities in cloud-based email and data protection, particularly within the Microsoft 365 ecosystem. The deal is expected to strengthen its position in the growing cybersecurity market and could boost investor interest if Proofpoint moves forward with an IPO.
The timing of the acquisition aligns with renewed momentum in cybersecurity funding. In the first quarter of 2025, venture-backed cybersecurity startups secured over $2.7 billion—up 29% from the previous quarter.
Also drawing attention to the sector was Alphabet’s planned $32 billion acquisition of cloud security company Wiz, marking the largest-ever deal for a venture-backed cybersecurity startup.