The acquisition highlights the growing demand for robust email security solutions amid rising cyber threats, reflecting a broader trend in the active cybersecurity mergers and acquisitions landscape.

This move follows other significant acquisitions in the cybersecurity sector, including Google's $32 billion purchase of Wiz, underscoring a shift in market dynamics.

As Proofpoint prepares for a potential initial public offering (IPO) in 2026, this acquisition is seen as a strategic step to enhance its market position after being taken private by Thoma Bravo in 2021.

Proofpoint's CEO, Sumit Dhawan, emphasized the significance of this acquisition for their global growth strategy, particularly in European markets.

Hornetsecurity will continue to operate as a separate business unit within Proofpoint, ensuring that its MSP and SMB clients experience no immediate changes to partner programs or channel ecosystems.

Proofpoint, a leading cybersecurity firm, is set to acquire Hornetsecurity Group, a move aimed at bolstering its managed service provider (MSP) capabilities.

Hornetsecurity, based in Hannover, Germany, has reported impressive growth, with over $160 million in annual recurring revenue and more than 20% year-over-year growth, largely driven by its flagship 365 Total Protection solution.

With a strong presence in Europe, Hornetsecurity provides AI-powered Microsoft 365 security and services to over 12,000 channel partners and more than 125,000 small and medium-sized businesses (SMBs).

This acquisition aligns with Proofpoint's strategy to expand its market presence in Europe and enhance its product portfolio to combat increasing cybersecurity threats.

The deal will add over 700 employees to Proofpoint, including 450 dedicated to research and development and partner support, further strengthening its operational capabilities.

Both companies plan to leverage shared threat intelligence and AI to enhance detection capabilities against cyber threats, aiming to set a new standard in human-centric security.