Gary Steele, chairman and CEO of Proofpoint, said in a press release on Monday (April 26) that the acquisition by Thoma Bravo “underscores our important role” in the prevention of online hacks and the response to threats when they happen.
“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,” Steele said. He added that this made Proofpoint the first cybersecurity and compliance company based on Software-as-a-Service to reach that milestone.
Traded on New York City’s Nasdaq until April 23, Proofpoint’s acquisition by Thoma Bravo will take the company private. On Friday (April 23), its last day of trading, Proofpoint had a market cap of $7.5 billion. The agreement gives Proofpoint shareholders $176 per share in cash, roughly 34 percent over the company’s closing share price.
Though the acquisition makes Proofpoint a private company, it will still have the flexibility and resources to bring cybersecurity and compliance solutions to companies and individuals worldwide, according to the release.
Steele added that as a private company, Proofpoint can “be even more agile” and can stay ahead of new threats while cementing its leadership position in the cybersecurity industry.
Dana Evan, lead independent director, board of directors, Proofpoint, said that the transaction will benefit the company and all its stakeholders, including shareholders, employees and customers.
“We determined this premium, all-cash offer and partnership would create immediate and certain value for shareholders and help us achieve our operational and market ambitions more quickly for the benefit of our customers,” Evan said.
In a PYMNTS interview with Karen Webster about cybersecurity, Johan Gerber, executive vice president of security and cyber innovation at Mastercard, said security integration has to start at the beginning of any innovation being introduced. Cooperation between competitors is also a priority in order for cybersecurity to offer the most protection.