Proofpoint to acquire Israeli cybersecurity firm Varonis in $6.3 billion deal

Israeli cybersecurity company Varonis Systems has agreed to be acquired by U.S. cybersecurity firm Proofpoint in an all-cash deal valued at approximately $6.3 billion, the companies announced on Thursday.

“Today begins an exciting new chapter for Varonis and our customers. It’s a testament to the incredible work of the Varonis team over two decades,” Varonis CEO, co-founder and chairman Yaki Faitelson said in a statement.

Founded in 2005 by Faitelson and Ohad Korkus, Varonis develops technology that helps organizations protect sensitive data. In recent years, the company has increasingly focused on securing artificial intelligence systems and the sensitive information they can access, as businesses adopt AI tools capable of handling confidential data and performing tasks across computer networks.

Varonis employs 2,800 people, including around 1,000 at its development center in Herzliya, Israel.

Under the agreement, Varonis shareholders will receive $49.75 per share, a 17% premium over the Israeli company’s closing share price on Sept. 1, the last trading day before additional media reports speculated about a possible sale.

“Our mission is to secure AI and the data that powers it. By joining forces with Proofpoint, we can achieve this mission faster than ever,” Faitelson added.

Proofpoint CEO Sumit Dhawan said the acquisition would help address security challenges arising from the growing use of AI in the workplace.

“As AI becomes embedded across the enterprise, the data it can access determines both its value and its risk,” Dhawan said. He added that AI agents’ growing ability to access sensitive information and perform tasks across computer systems makes it increasingly important for organizations to monitor how data is accessed and used.

Proofpoint, which is owned by private equity firm Thoma Bravo, specializes in protecting people and organizations from cyber threats. The acquisition would expand its capabilities in data security and AI protection.

The transaction is expected to close in the first half of 2027, subject to shareholder and regulatory approval.