Proofpoint to Acquire Hornetsecurity for Over $1 Billion, Expanding AI-Powered Microsoft 365 Security

Proofpoint to acquire Hornetsecurity in move to expand Microsoft 365 threat protection - SiliconANGLE

Proofpoint to acquire Hornetsecurity in move to expand Microsoft 365 threat protection Cybersecurity firm Proofpoint Inc. today announced that it had entered into a definitive agreement to acquire Hornetsecurity GmbH, a Germany-based pan-European provider of artificial intelligence-powered Microsoft 365 security, data protection, compliance and security awareness services. While the price of the acquisition was not officially disclosed, CNBC reports that the deal was north of $1 billion. Founded in 2007, Hornetsecurity's flagship offering, called 365 Total Protection, offers a suite designed to secure Microsoft 365 users against threats like spam, phishing, malware and ransomware. The offering includes advanced features such as AI-powered threat detection, email encryption and compliance filtering tailored for enterprise needs. In addition to threat protection, Hornetsecurity provides email continuity and archiving solutions that ensure uninterrupted email access during outages and maintain secure, legally compliant archives for long-term data retention and audit readiness. Another product offering from the company, 365 Total Backup, delivers reliable backup and recovery for Microsoft 365 emails, contacts, calendars, OneDrive and SharePoint, allowing organizations to quickly recover from things such as accidental deletions, ransomware attacks, or system failures. For Proofpoint, the acquisition of Hornetsecurity will enhance its ability to provide human-centric security to small and mid-sized businesses globally through managed service providers, further enabling all organizations to protect their people and defend their data. In a positive, particularly given that Proofpoint is working towards going public in 2026, Hornetsecurity also brings impressive numbers to the table. The company provides solutions to over 12,000 channel partners and MSPs and more than 125,000 SMBs across Europe and notably has over $160 million in annual recurring revenue with over 20% year-over-year growth. "As attackers grow more sophisticated and people remain the primary target, organizations need security that protects them wherever they work - across email, cloud applications and every digital channel," said Sumit Dhawan, chief executive officer of Proofpoint, in a statement. "With the addition of Hornetsecurity, we're excited to extend our industry-leading, human-centric security platform to better serve the unique needs of MSPs and SMBs. We look forward to deepening our investment in the European markets as part of our global growth strategy." Coming into its acquisition, Hornetsecurity had raised six rounds of funding, according to Tracxn, but the amounts raised between a seed round in December 2007 and the company's Series C round in September 2022 were not disclosed. Investors in Hornetsecurity include TA Associates Management, PSG Equity, Verdane Capital Advisors AS, Neuhaus Partners GmbH and High-Tech Gründerfonds Management GmbH. The acquisition follows in the footsteps of other notable cybersecurity acquisitions this year, including Google LLC's announcement in March that it plans to acquire Wiz Inc. for $32 billion and Palo Alto Networks Inc.'s buy of Protect AI Inc. for an amount reportedly more than $500 million in April.

Proofpoint to Acquire Hornetsecurity and Expand Human-Centric Security Solution Worldwide | PYMNTS.com

The company has entered into a definitive agreement for the acquisition and expects the acquisition to close in the second half of the year, subject to customary closing conditions, according to a Thursday (May 15) press release. The deal will add Hornetsecurity Group's artificial intelligence-powered Microsoft 365 security, data protection, compliance and security awareness services, which are provided across Europe, to Proofpoint's cybersecurity and compliance solutions for businesses of all sizes around the globe, according to the release. Upon the closing of the acquisition, Proofpoint plans to make the Hornetsecurity platform available for MSPs and their customers worldwide, per the release. "As attackers grow more sophisticated and people remain the primary target, organizations need security that protects them wherever they work -- across email, cloud applications and every digital channel," Proofpoint CEO Sumit Dhawan said in the release. "With the addition of Hornetsecurity, we're excited to extend our industry-leading, human-centric security platform to better serve the unique needs of MSPs and SMBs." Hornetsecurity founder and CEO Daniel Hoffman will remain at the helm of the company, and Hornetsecurity's management team will remain on board, according to the release. The company's platform enables thousands of MSPs to provide security services to their SMB customers across Europe, Hoffman said in the release. "With the breadth of human-centric risks only growing, joining Proofpoint is a natural next step in our journey to build the strongest global offering of M365 security services," Hoffman said. "By coming together, we can better serve our partners and customers and extend that protection globally to help MSPs everywhere safeguard their customers' people, data and operations." Chief operating officers are adopting generative AI-driven solutions to improve cybersecurity management as cyberattacks grow more sophisticated, according to the PYMNTS Intelligence report "The AI MonitorEdge Report: COOs Leverage GenAI to Reduce Data Security Losses." The report found that the share of COOs who reported that their companies have implemented AI-powered automated cybersecurity management systems increased from 17% in May 2024 to 55% in August 2024.