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In a major move that could reshape the landscape of cybersecurity services in Europe, Proofpoint has announced its intent to acquire Germany-based Hornetsecurity Group in a deal valued at over \$1 billion. This acquisition, the largest in Proofpoint’s history, is poised to significantly bolster its reach within the European SMB (small and mid-sized business) and MSP (managed service provider) markets. With both companies specializing in Microsoft 365 security, the deal represents a convergence of technologies aimed at reinforcing cloud and email protection for businesses of all sizes.
Proofpoint’s Bold Leap into the SMB Arena
Proofpoint, a global leader in cybersecurity solutions with a strong emphasis on email and cloud security, is taking a strategic leap with the acquisition of Hornetsecurity. The German company, headquartered in Hannover, boasts an impressive network of over 12,000 MSPs and serves more than 125,000 SMBs across Europe. Hornetsecurity generates \$160 million in annual recurring revenue and has been growing steadily at over 20% year-over-year.
Though financial terms were not officially disclosed, CNBC reported the purchase price is “well over” \$1 billion, marking a significant investment in Europe’s rapidly evolving cybersecurity space. This acquisition not only gives Proofpoint deeper access to a lucrative SMB market, but also strengthens its footprint in the EU region.
Hornetsecurity’s flagship platform, 365 Total Protection, is a multi-tenant service designed for MSPs and includes key features like email security, cloud backups, phishing awareness training, access controls, and anti-domain fraud tools. This directly aligns with Proofpoint’s focus on human-centric cybersecurity, especially across Microsoft 365, where both companies already have overlapping competencies and market segments.
CEO of Proofpoint, Sumit Dhawan, emphasized the growing need for a security platform that safeguards users across all digital touchpoints — from email to cloud. As cyber threats become more sophisticated, the importance of protecting the “human layer” becomes even more critical.
The acquisition also mirrors broader trends in the cybersecurity sector, where giants are consolidating to offer end-to-end security solutions. In recent months, major moves have been made by Google, which aims to acquire Wiz for \$32 billion, and Palo Alto Networks, targeting Protect AI in an AI-focused deal. Proofpoint’s acquisition follows its 2021 privatization by Thoma Bravo for \$12.3 billion and occurs at a time when Proofpoint is reportedly considering going public again.
The transaction is expected to close in the second half of 2025, pending regulatory approvals.
What Undercode Say:
This acquisition is a textbook example of strategic market penetration through acquisition, and there’s a lot to unpack here. Proofpoint is clearly making a calculated move not just for geographic expansion but also for market diversification. Its dominance has traditionally been in the enterprise space, particularly in North America. But with Hornetsecurity’s well-established MSP ecosystem, Proofpoint can tap directly into the under-served European SMB segment — a market notoriously difficult to enter without local infrastructure and trust.
From a technological standpoint, both companies operate in the Microsoft 365 environment, which streamlines product integration and cross-platform development. Hornetsecurity’s modular platform, 365 Total Protection, is not just a security suite but a business enabler for MSPs. By acquiring this, Proofpoint isn’t simply purchasing customers; it’s acquiring a full-blown MSP distribution engine, something invaluable in Europe’s fragmented IT support landscape.
This move also solidifies Proofpoint’s intention to lean into “human-centric security” — a term that has gained traction as cyberattacks increasingly exploit human behavior rather than just system vulnerabilities. Social engineering, phishing, and credential theft remain leading attack vectors, and both companies are clearly aligned in their approach to neutralizing such threats.
Financially, the deal makes sense. Hornetsecurity’s \$160 million ARR with 20% annual growth suggests strong profitability and market relevance. At a valuation north of \$1 billion, the multiple is justifiable in today’s cybersecurity acquisition environment, especially when factoring in strategic synergy and market reach.
It’s also important to view this acquisition in the context of Proofpoint’s IPO ambitions. Investors looking at a future IPO will likely see this move as a growth accelerator, enhancing the company’s valuation and appeal in public markets. It demonstrates expansion not only in size but also in vision and global positioning.
In parallel, the cybersecurity sector as a whole is undergoing a transformation, where the biggest players are racing to create end-to-end ecosystems rather than isolated tools. Proofpoint’s move aligns with this trend and signals an evolution from being a niche vendor to a comprehensive security platform provider.
Finally, this acquisition could trigger more regional consolidations, as other cybersecurity firms scramble to establish footholds in Europe’s MSP/SMB domain. It’s a clear message: market access and distribution channels are just as critical as technology in the cybersecurity game.
Fact Checker Results ✅
🔹 The deal value is confirmed to exceed \$1 billion, as per CNBC
🔹 Hornetsecurity reports \$160M ARR with 20%+ YoY growth
🔹 Transaction is expected to finalize in H2 2025
Prediction 🔮
Proofpoint’s acquisition of Hornetsecurity is likely to spark a new wave of mid-tier cybersecurity consolidations in Europe. Expect to see more U.S. firms acquiring regional players to gain instant market access. Additionally, the integration of Hornetsecurity’s MSP network into Proofpoint’s product ecosystem could set a new standard for hybrid security delivery models tailored for SMBs. With IPO talks looming, Proofpoint is positioning itself to become not just a security vendor, but a global platform provider ready for the next evolution of digital protection.
References:
Reported By: cyberscoop.com
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