Proofpoint is buying Hornetsecurity for over $1 billion, combining their strong cybersecurity game with Hornetsecurity’s Microsoft 365 (M365) security expertise.
The deal brings together two important cybersecurity puzzle pieces. Hornetsecurity is pretty established in Europe for AI-powered M365 security, data protection, compliance, and security awareness services, while Proofpoint specializes in “human-centric security.”
Combining strengths: human-centric + M365 Security
This partnership is designed to strengthen Proofpoint’s position in the small and mid-sized business (SMB) market, through managed service providers in particular. With Hornetsecurity’s MSP connections, they can now give small companies the same level of protection that large enterprises get.
Analysts see this as a smart move that addresses the mounting security challenges companies face as they switch to cloud tools like Microsoft 365.
Hornetsecurity is a serious performer, bringing $160 million in annual recurring revenue, 20%+ year-over-year growth, and exceeding the Rule of 60 (which shows strong market demand and operational excellence).
The two companies serve different markets, but the fit seems to make sense. Hornetsecurity supports 12,000+ channel partners and protects 125,000+ European SMBs, while Proofpoint dominates the enterprise space with 85% of Fortune 100 and half of Fortune 1000 companies. Their combined efforts have the potential to create a comprehensive security platform with shared threat intelligence, again, setting the aim on people-focused protection worldwide.
Aimed at MSPs and the SMB market
“As attackers grow more sophisticated and people remain the primary target, organizations need security that protects them wherever they work—across email, cloud applications, and every digital channel,” said Sumit Dhawan, CEO of Proofpoint. “With the addition of Hornetsecurity, we’re excited to extend our industry-leading, human-centric security platform to better serve the unique needs of MSPs and SMBs. We look forward to deepening our investment in the European markets as part of our global growth strategy.”
According to Daniel Hofmann, founder and CEO of Hornetsecurity, given the growing number of human-focused security threats, becoming part of Proofpoint is the clear next phase in the journey.
“With the breadth of human-centric risks only growing, joining Proofpoint is a natural next step in our journey to build the strongest global offering of M365 security services,” said Hofmann. “By coming together, we can better serve our partners and customers and extend that protection globally to help MSPs everywhere safeguard their customers’ people, data, and operations.”
Proofpoint’s idea is to make Hornetsecurity the go-to spot for all the smaller businesses and managed service providers they work with. They’re expecting the deal to be done by the second half of the year.
For MSPs, this looks like a big opportunity. Proofpoint’s security smarts, combined with Hornetsecurity’s M365 focus and strong partner network, could mean MSPs get a more powerful and integrated security offering to sell to their SMB clients.
SMBs need the “same thing” as enterprises, but becoming and staying secure remains a challenge. Revisit our interview with the CEO of Coro to learn about simplifying SMB cybersecurity, tackling tech sprawl, and empowering channel partners with innovative solutions.