Hornetsecurity to Merge with Proofpoint, Enhancing Global Cybersecurity
Deal News | May 15, 2025 | Verdane
Investment firms TA Associates, PSG Equity, and Verdane have announced a definitive agreement for their portfolio company, Hornetsecurity, to be acquired by Proofpoint, Inc. Hornetsecurity, a provider of AI-powered M365 security, data protection, compliance, and security awareness solutions, serves over 125,000 customers in more than 120 countries. The acquisition by Proofpoint will amplify Hornetsecurity's capabilities, particularly benefiting small and mid-sized businesses by enabling enhanced human-centric security measures via MSPs. Verdane initially invested in Hornetsecurity in 2016, with subsequent investments by PSG and TA. The acquisition is part of Hornetsecurity's growth trajectory, marked by nine acquisitions aimed at expanding its cloud cybersecurity offerings. Arma Partners served as Hornetsecurity's financial advisor, with legal counsel from Latham & Watkins and Hengeler Mueller for management. Closing of the acquisition is anticipated in late 2025.
Sectors
- Cybersecurity
- Private Equity
- Technology
Geography
- Germany – Hornetsecurity is based in Hanover, Germany.
- United States – Proofpoint, the acquiring company, is based in the United States.
- Europe – Verdane, PSG Equity, and some operations of Hornetsecurity are based in Europe.
Industry
- Cybersecurity – The article discusses a merger involving Hornetsecurity, which provides cybersecurity solutions.
- Private Equity – The article involves several private equity firms, such as Verdane, PSG Equity, and TA Associates, in the acquisition of Hornetsecurity.
- Technology – Hornetsecurity offers AI-powered technology solutions, and the merger aims to enhance technological capabilities.
Financials
- $160 million – Annual Recurring Revenue (ARR) of Hornetsecurity.
- Over 20% – Year-over-year growth rate of Hornetsecurity.
- Over 8 billion – Assets under management by Verdane.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Hornetsecurity Group | Target Company | Company | A global provider of AI-powered cybersecurity solutions. |
| Proofpoint, Inc. | Acquiring Company | Company | A leading cybersecurity firm focused on people-centric security solutions. |
| Verdane | Selling Company (Vendor) | Private Equity Firm | A growth buyout investment firm. |
| TA Associates | Selling Company (Vendor) | Private Equity Firm | A global private equity firm focused on scaling growth in companies. |
| PSG Equity | Selling Company (Vendor) | Private Equity Firm | A growth equity firm partnering with software and tech-enabled services companies. |
| Arma Partners | Financial Advisor | Company | Served as financial advisor to Hornetsecurity and its investors. |
| Latham & Watkins | Legal Advisor | Company | Provided legal counsel to Hornetsecurity. |
| Hengeler Mueller | Legal Advisor | Company | Provided legal counsel to Hornetsecurity management. |