Proofpoint to Acquire Cybersecurity Firm Varonis in 6.3 Billion Dollar Deal
American firm Proofpoint has agreed to acquire cybersecurity company Varonis for 6.3 billion dollars in cash, leading to its delisting from Nasdaq.
Varonis Systems has agreed to be acquired by American cybersecurity firm Proofpoint in a landmark all-cash transaction valued at 6.3 billion dollars. Founded in 2005 by Yaki Faitelson and Ohad Korkus, the deep-tech company has grown into a major data security platform expected to reach 1 billion dollars in annual revenue next year. Following the completion of the deal, Varonis will be delisted from the Nasdaq exchange.
Leadership and Development Center in Herzliya
CEO Yaki Faitelson, a graduate of the IDF's Unit 81, noted that the company maintains its primary Israeli research and development center in Herzliya, employing 1,000 workers out of a total global workforce of 2,800. Faitelson returned to Israel in 2024 following the outbreak of the war in Gaza, stating that he felt strongly about returning home. Proofpoint, with approximately 5,000 employees and 2.7 billion dollars in revenue, represents a strategic merger that creates significant growth opportunities in the cybersecurity sector.
"Proofpoint approached us, and we saw clear synergies and a unique window of opportunity to build a massive enterprise in this domain," said Yaki Faitelson, CEO of Varonis.
AI Integration and Future Growth
With the rapid expansion of artificial intelligence, Varonis has positioned its platform to secure enterprise data against automated AI agents while enabling secure data utilization. Faitelson emphasized that the acquisition will provide substantial financial value to shareholders and employees holding restricted stock units (RSUs), while preserving the core development and marketing teams within the integrated corporate structure.
