Proofpoint seals USD $1.8bn Hornetsecurity deal

Cybersecurity company Proofpoint has closed its acquisition of German-based Hornetsecurity in a USD $1.8 billion deal that deepens its push into the small and midsize business market and the managed service provider channel.

The transaction adds a large European email and cloud security provider to Proofpoint's portfolio. Hornetsecurity focuses on Microsoft 365 security, data protection, compliance and security awareness products for managed service providers (MSPs) and smaller organisations.

Proofpoint said the purchase advances its plan to expand its human-focused security platform across organisations of different sizes. The company has traditionally worked with large enterprises and heavily regulated sectors.

Hornetsecurity generates annual recurring revenue of nearly USD $200 million. The company reports year-over-year growth of about 20 per cent.

Proofpoint said the buyout strengthens its presence in Europe. Hornetsecurity has customers in more than 120 countries and a large partner network in the region.

Hornetsecurity's services are sold primarily through MSPs and channel partners. The company said its network exceeds 12,000 partners that support more than 125,000 end customers.

MSP-focused unit

Hornetsecurity will operate as a dedicated business unit inside Proofpoint. The unit will focus on MSPs and small to midsize businesses worldwide.

Daniel Hofmann, Hornetsecurity's founder and chief executive, will lead the unit. His new role is Executive Vice President and General Manager within Proofpoint.

Proofpoint said Hofmann's existing leadership team will remain in place. The team will oversee product development, routes to market and partner programmes across the MSP Platform.

Customers and partners will continue to access Hornetsecurity's existing support channels. Proofpoint said those organisations will also gain access to its broader research, security operations and threat intelligence functions.

Proofpoint's senior leadership framed the deal as part of a wider strategy around what it calls "human and agent-centric" security. The company is investing in tools that cover people, data and AI-based systems.

"We're thrilled to officially welcome Hornetsecurity to Proofpoint and further our mission to protect the emerging agentic workspace for customers of every size," said Sumit Dhawan, CEO, Proofpoint. "Together, we will extend our human and agent-centric security leadership to safeguard people, AI agents, and data, while expanding our reach to SMBs and MSPs with Hornetsecurity's proven, scalable platform. As threats grow faster and more targeted, our combined expertise will raise the bar for innovation and resilience-helping customers and partners worldwide safeguard what matters most."

Microsoft 365 focus

Hornetsecurity's core product is 365 Total Protection. The software is positioned as a cloud security platform for Microsoft 365.

The company offers email security services through the platform. It also offers backup, compliance tools, awareness training and access control services.

MSPs use a multi-tenant control panel in the product. This allows them to manage multiple customers within one interface.

The platform targets MSPs that prefer unified suites over separate tools. It is aimed at partners that support Microsoft 365 tenants at scale.

Hofmann said the combination with Proofpoint would build on Hornetsecurity's existing channel-led model.

"Joining Proofpoint marks a new chapter in our journey," said Daniel Hofmann, founder and CEO of Hornetsecurity. "Together, we're uniquely positioned to deliver the most effective M365 security and data protection to MSPs around the world. Building on our time-tested and well-established channel-centric approach, our combined capabilities, shared threat intelligence, and aligned vision will drive a new level of innovation and value for our partners and customers globally."

SMB expansion

Proofpoint's customer base includes more than 10,000 large enterprises and a majority of the Fortune 100. The Hornetsecurity deal extends that footprint into smaller organisations that rely on outsourced IT and security services.

Hornetsecurity has built its business around MSPs that serve SMB clients. Proofpoint gets direct access to those partners and their end customers through the acquisition.

The arrangement aligns with a broader industry trend in which MSPs aggregate security and compliance services for smaller firms. Many of those firms run their core productivity and collaboration tools on Microsoft 365.

Proofpoint said the Hornetsecurity business unit will concentrate on that segment. The unit will continue to offer products and services via the MSP Platform.

The company said it plans to integrate its threat intelligence and research into Hornetsecurity's portfolio over time. It will also explore cross-sell opportunities for existing enterprise customers that work with MSPs.

Proofpoint described the acquisition as a signal of its commitment to the European market and to AI-based security products for organisations in different regions and size bands. The company said further integration work between the two businesses will continue over the coming months.