Thoma Bravo-backed Proofpoint in talks to buy $5 billion Varonis Systems

  • Proofpoint is in advanced talks to acquire Varonis Systems, people familiar with the matter said.
  • Varonis shares rose as much as 13% Wednesday after reports of the discussions.
  • Thoma Bravo took Proofpoint private in 2021 for approximately $12.3 billion.

Thoma Bravo-backed Proofpoint is discussing a possible acquisition of cybersecurity firm Varonis Systems, sending Varonis shares up more than 10% and as much as 13% Wednesday. Reuters cited a source familiar with the matter, while Bloomberg reported that a transaction could be announced in the coming weeks. The discussions could still collapse, another bidder could emerge, and no final decision has been made. Varonis, a Miami-based company listed on Nasdaq under VRNS, had a market value of roughly $5 billion before the reports and about $5.4 billion after the share-price jump. Varonis provides data security and analytics tools, including data classification, behavior tracking and controls for sensitive information across cloud environments. A deal would combine Varonis's data governance and insider-threat capabilities with Proofpoint's email security and threat-protection products. Thoma Bravo took Proofpoint private for approximately $12.3 billion in 2021 and has continued investing heavily in cybersecurity, including through the acquisition of SailPoint Technologies.

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