The Biggest Security Deal Of All-Time

Proofpoint will potentially walk away from the public market nearly a decade after its initial public offering following the $12.3 billion purchase offer from private equity giant Thoma Bravo. The potential acquisition of the Sunnyvale, Calif.-based email security powerhouse would add yet another cybersecurity firm to the expansive portfolio of Chicago and San Francisco-based Thoma Bravo.

“We have made tremendous strides in expanding the sophistication and scale of our offerings, and in 2020 we generated more than $1 billion in annual revenue – making Proofpoint the first SaaS-based cybersecurity and compliance company to reach that milestone,” Proofpoint Chairman and CEO Gary Steele said in a statement.

The Thoma Bravo-Proofpoint deal will be the largest acquisition in cybersecurity history, beating out Broadcom’s $10.7 billion purchase of Symantec in August 2019, Intel’s $7.6 billion buy of McAfee in July 2010, and Okta’s proposed $6.5 billion acquisition of Auth0 in February 2021. Proofpoint will become the world’s most valuable privately-held cybersecurity firm, beating Tanium’s valuation by $3.3 billion.

Here’s a look at how Proofpoint can leverage Thoma Bravo’s expertise and track record to its advantage, the likelihood of another buyer coming in with a superior bid for Proofpoint, and why this deal is likely to kick off a tech M&A spree.