Proofpoint to Buy Insider Threat Management Company ObserveIT for $225M

Source: ObserveIT

US cybersecurity company Proofpoint has entered into a definitive agreement to acquire ObserveIT, an Israeli-founded insider threat management company, for $225 million in cash, the companies announced Sunday. The deal is expected to be completed the fourth quarter of 2019, subject to customary closing conditions.

With this acquisition, Proofpoint will extend its data loss prevention (DLP) capabilities to form a more enhanced offering for enterprises, the California-based company said.

Founded in 2006 by Gaby Friedlander and Avi Amos, ObserveIT is headquartered in Boston with an R&D center in Israel. The company raised $53 million to date according to Crunchbase. In 2013, US venture capital firm Bain Capital acquired control of the company as part of a $20 million financing round. ObserveIT employs 150 people, 70 of them in Israel, and has over 1,800 customers across 87 countries.

“Today’s ObserveIT acquisition underscores Proofpoint’s commitment to providing organizations with people-centric cybersecurity and compliance solutions that protect what matters: their people and the data they have access to, in a post-perimeter, cloud-first world,” said Gary Steele, chairman of the board and chief executive officer of Proofpoint. “Defending data requires the ability to detect risky insider threat behavior and risky user activity, and swiftly mitigate risk across cloud apps, email, and endpoints. We are the only security company that provides organizations with deep visibility into their most attacked people—and with ObserveIT, we will bring to market the first truly innovative enterprise DLP offering in years. We are thrilled to welcome ObserveIT’s employees and customers to Proofpoint.”

This is Proofpoint’s third acquisition in Israel in the last three years. It acquired FireLayers, a cloud security company, for $55 million in October 2016 and MetaNetworks, a startup that secures access to zero trust-based networks, for $120 million in May 2019. The total amount invested by Proofpoint in Israeli technologies through these three transactions is $400 million.

 

[Sources: MoCamels, Globes, Calcalist]