The all-cash deal, announced October 15, is expected to close in the first half of 2027. About 1,000 of Varonis’ 2,800 employees are in Herzliya.
Another Israeli-founded cybersecurity company is being bought for billions. On Thursday, October 15, Proofpoint agreed to acquire Varonis Systems in an all-cash deal valued at about $6.3 billion.
The terms, per the companies’ joint announcement: Varonis shareholders get $49.75 a share. That is 52 percent above the $32.71 closing price on June 22, the last trading day before the first sale rumors, and 17 percent above $42.35 on September 1, before a second round of reports. The companies expect the deal to close in the first half of 2027, subject to shareholder and regulatory approval. Varonis’ board approved it unanimously. Proofpoint is owned by the private equity firm Thoma Bravo, which is providing committed equity financing, and Ontario Teachers’ Pension Plan has agreed to invest in Proofpoint as part of the deal. Once it closes, Varonis will leave the Nasdaq and become private.
Who is Varonis?
It was founded in 2005 by Yaki Faitelson and Ohad Korkus. It is headquartered in Miami and publicly traded under VRNS. VINnews reports it employs about 2,800 people, roughly 1,000 of them in Herzliya, Israel. Its software maps where sensitive data sits inside an organization, who can reach it and how it is used, and it now sells itself as a way to secure data for AI tools.
What the buyers say
Proofpoint, which is known for email security, says the combined company would serve more than 16,000 enterprises. CEO Sumit Dhawan said AI agents are gaining wide access to sensitive data, which makes data security a defining priority. Faitelson, Varonis’ co-founder and CEO, called the sale “a testament to the incredible work of the Varonis team over two decades.” He said a board committee ran a broad review and reached out to a range of buyers.
What this does not tell us
The announcement does not say what happens to Varonis’ Israeli operations, including the Herzliya site, after closing, and we should not guess. Both companies say they will operate separately until then.
The broader picture: this is the latest large cybersecurity exit tied to Israeli founders, in a sector where Israeli teams have built many of the field’s best-known companies. The deal will also bring a payout to Varonis shareholders. Proofpoint’s and Varonis’ own language is promotional, so the reasons for the price are theirs, not an independent assessment.
Sources and reporting note
Proofpoint and Varonis joint announcement
The deal is agreed, not completed; it needs shareholder and regulatory approval. The price, premiums and closing timeline are from the companies’ joint announcement. “Israeli-founded” reflects the founders’ background and the Herzliya workforce; Varonis is headquartered in Miami.
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