Cybersecurity firm Proofpoint is set to acquire European competitor Hornetsecurity in a deal valued at over $1 billion, marking the largest acquisition in Proofpoint’s history. The move aims to bolster Proofpoint’s presence across Europe as the company prepares for a potential return to the public markets. Hornetsecurity, based in Hannover, Germany, specializes in cloud-based managed email security, protecting businesses from cyberattacks, data breaches, and compliance risks linked to Microsoft 365 and other IT platforms.
The cybersecurity sector has experienced increased consolidation recently, driven by the rising complexity and volume of AI-enhanced cyber threats. Industry giants like Google and Palo Alto Networks have recently acquired startups focused on cloud security and AI-powered cyber defense, reflecting a broader trend of strategic mergers and acquisitions designed to strengthen market positions and technology capabilities.
Strengthening MSP Ecosystem and AI Defense Capabilities
Proofpoint, owned by private equity firm Thoma Bravo since its 2021 privatization, views the acquisition as a strategic step to deepen its expertise within the managed service provider (MSP) ecosystem. Hornetsecurity’s focus on MSPs aligns with Proofpoint’s goal to deliver integrated cybersecurity solutions that address the increasingly sophisticated nature of cyberattacks fueled by generative AI.
CEO Sumit Dhawan highlighted the evolving threat landscape shaped by AI, emphasizing the growing vulnerability of small and medium-sized businesses. Dhawan explained that the combined capabilities of Proofpoint and Hornetsecurity would help consolidate fragmented security tools into a unified platform that effectively protects people and data across global cyber threats. “Generative AI has fundamentally changed the threat landscape, enabling faster, more targeted, and more complex attacks,” he noted, underscoring the urgent need for comprehensive, high-performance cybersecurity solutions.
Looking Ahead to a Public Market Return
Proofpoint’s leadership has been clear about its ambition to explore a return to public markets, aiming for an IPO possibly in 2026. Since being taken private in a $12.3 billion acquisition by Thoma Bravo, the company has pursued growth through external funding and acquisitions of smaller cybersecurity firms. The Hornetsecurity deal not only diversifies Proofpoint’s market reach but is also expected to significantly contribute to its earnings and cash flow, strengthening the company’s financial position ahead of any public offering.
While Dhawan stated that there are no immediate updates on the IPO timeline, he reaffirmed the company’s interest in going public when market conditions are favorable. Hornetsecurity currently serves more than 125,000 small and medium-sized businesses and employs over 700 people, complementing Proofpoint’s existing workforce of 4,500 employees and its strong client base, which includes 85% of Fortune 100 companies.
The acquisition is expected to close in the second half of 2025, pending customary regulatory approvals, setting the stage for Proofpoint’s enhanced market presence and potential public market debut.
