Veteran Israeli cybersecurity agency Varonis Techniques (Nasdaq: VRNS), which is traded on Nasdaq, is being acquired by US firm Proofpoint for $6.3 billion in money, representing a 52% premium over its value in June 2026, when rumors concerning its sale first surfaced.
At the moment, the corporate has a market cap of $5.43 billion. The client, Proofpoint, which makes a speciality of securing end-users and AI brokers, is held by personal fairness agency Thoma Bravo.
Employs 2,800 folks
Varonis was co-founded by its CEO and chairperson Yaki Faitelson in 2004 as a knowledge safety system throughout the enterprise cloud. It was a pioneer in detecting cyber threats via the usage of synthetic intelligence. Immediately, it employs 2,800 folks, about 1,000 of whom are primarily based at its improvement heart in Israel.
Varonis’s shareholders, principally institutional traders akin to BlackRock and Vanguard, will obtain $49.75 in money per share. This represents a 16% premium over the present value. The deal values Varonis at roughly 53 occasions its free money circulation and roughly 8.4 occasions its income for the 12-month interval ending in June of this yr. Whereas the sale value embodies a 240% premium over the corporate’s valuation in its IPO 11 years in the past, it might symbolize a loss for traders who bought the inventory throughout its peak in 2021, or throughout 2024-2025.
This marks the second Israeli cybersecurity firm to be delisted from the inventory change this yr. The earlier occasion concerned CyberArk, which was acquired by Palo Alto Networks, which is listed on the New York Inventory Alternate, for $25 billion. That transaction coincided with Palo Alto’s itemizing on the Tel Aviv Inventory Alternate.
Complementing Proofpoint
Varonis, a dominant participant in knowledge safety for on-premises and cloud infrastructure, has lengthy been within the midst of a transition towards public cloud infrastructure and a enterprise mannequin primarily based on month-to-month and annual software program licenses (SaaS). Nevertheless, the rise of synthetic intelligence poses dangers to corporations working beneath such a mannequin.
Acquisition by a non-public fund will make it simpler for it to adapt to the AI period, wherever obligatory even at the price of profitability, and to enhance Proofpoint (an id and person administration system) with the property it brings to the desk: cloud knowledge safety infrastructure (DSPM – knowledge safety posture administration). It is a quickly rising sector, that includes gamers starting from unicorns like Cyera to business giants like Palo Alto Networks.
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“Immediately begins an thrilling new chapter for Varonis and our prospects. It is a testomony to the unbelievable work of the Varonis staff over twenty years,” Faitelson mentioned. “Our mission is to safe AI and the info that powers it. By becoming a member of forces with Proofpoint, we will obtain this mission sooner than ever.
“This announcement follows a complete analysis led by a committee of unbiased members of our board of administrators, which included in depth outreach to a variety of potential strategic and monetary patrons. This transaction is a superb end result for the corporate and our shareholders, representing a realization of fast, important, and sure worth properly in extra of the risk-adjusted worth of delivering towards our standalone plan.”
Revealed by Globes, Israel enterprise information – en.globes.co.il – on October 16, 2026.
© Copyright of Globes Writer Itonut (1983) Ltd., 2026.
