Another major transaction in the cybersecurity field: Proofpoint, a cybersecurity firm owned by private equity company Thoma Bravo, will purchase Israeli information security firm Varonis Systems in a cash transaction valued at about $6.3 billion.

Per the agreement terms, Varonis shareholders will receive $49.75 per share in cash. This amount marks a 52% premium above the stock closing price on June 22, prior to the first reports and estimates of a possible company sale.

The offer sets Varonis market capitalization at $5.71 billion. Company shares rose about 2.7% in late trading after the announcement. The deal is set to close in the first half of 2027 amid a global rise in cybersecurity spending by firms to address growing cybercrime and increased use of artificial intelligence for data theft.

Varonis is an Israeli-American company started in 2005 by Yaki Faitelson and Ohad Korkus, who had worked at NetVision and NetApp. It is based in Miami with its research and development center in Herzliya. The firm delivers advanced digital security offerings such as data classification for cloud storage and employee behavior monitoring. "Our mission is to secure artificial intelligence and the data that feeds it. By joining forces with Proofpoint, we will be able to achieve this goal faster than ever," said Faitelson, cofounder and CEO of Varonis.

Initial reports on the deal emerged months ago when Reuters noted in September that Proofpoint was in advanced talks to acquire Varonis. Earlier in June, media outlets reported Varonis was exploring a sale due to interest from private equity firms, which caused a roughly 30% stock rise at that time.

On the buyer side, Proofpoint, which develops software to defend companies from cyberattacks, was acquired by Thoma Bravo in 2021 in a deal that took the firm private at a valuation of about $12.3 billion. Goldman Sachs served as financial adviser to Varonis for this transaction, while BofA Securities, Morgan Stanley, J.P. Morgan, UBS, and Mizuho Securities USA advised Proofpoint.

Along with the acquisition announcement, Varonis said it will release third-quarter financial results on November 3 but will not hold an investor conference call due to the pending deal.