Proofpoint Acquires Hornetsecurity in USD 1.8 Bn Deal to Boost SMB Cloud Security

Cybersecurity and compliance firm Proofpoint has completed its acquisition of Hornetsecurity Group, a cloud security provider known for its Microsoft 365 focused protection and compliance offerings.

The move marks a significant step in Proofpoint's plan to expand its human centric and agent centric security solutions across managed service providers and small to midsize businesses.

Hornetsecurity has a strong presence in Europe with more than 125,000 customers supported through over 12,000 MSPs and channel partners. With this acquisition, Proofpoint aims to bring advanced security capabilities to a wider base of smaller organisations that continue to face rapidly evolving cyber threats.

Sumit Dhawan, CEO of Proofpoint, said, "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."

Hornetsecurity is known for its cloud based security, backup and compliance solutions. Its flagship platform, 365 Total Protection, provides email security, backup, compliance tools, awareness training and access control for Microsoft 365 environments. The platform is designed with a single multi tenant control panel that helps MSPs manage multiple clients without relying on separate point solutions.

Daniel Hofmann, founder and CEO of Hornetsecurity, said, "Joining Proofpoint marks a new chapter in our journey. Together, we are uniquely positioned to deliver the most effective M365 security and data protection to MSPs around the world."

Following the acquisition, Hornetsecurity will operate as a dedicated business unit within Proofpoint. Hofmann will serve as executive vice president and general manager, and his leadership team will continue to oversee product innovation and partner strategy. Proofpoint stated that customers and partners will experience consistent service with added advantages from expanded research and threat intelligence resources.

The acquisition is valued at USD 1.8 billion. Hornetsecurity currently generates nearly USD 200 million in annual recurring revenue and is growing at around 20 percent year over year.