Thoma Bravo's Proofpoint in talks to buy cybersecurity firm Varonis, source says

Sept 2 (Reuters) - Thoma ‌Bravo-owned Proofpoint ​is ​in discussions to acquire cybersecurity firm Varonis Systems, a source familiar with the matter ‌told Reuters on Wednesday.

Shares of Varonis, which ⁠has a market value of about $5 billion, closed up over ‌10%.

Private equity firm Thoma ‌Bravo declined a request for comment, while Proofpoint and Varonis did not immediately respond.

Miami-based Varonis offers ​cybersecurity services, including data classification on cloud storage systems and employee behavior tracking, employing ⁠over 2,400 people across 14 global offices.

Its shares jumped about 30% following ​media reports in June that the firm was weighing a sale after fielding takeover ​interest from private equity firms.

Thoma ‌Bravo in 2021 agreed to acquire Proofpoint, which sells software that helps ⁠companies guard against cyberattacks, valuing the firm at about $12.3 billion in the take-private deal.

A takeover of Varonis would ⁠bring two complementary data security businesses together, allowing Proofpoint to ​strengthen its offerings around protecting sensitive corporate information and managing access to it.

Deals in the cybersecurity space have slowed ‌of late, in parallel with other software firms, as the industry is among ‌those perceived as vulnerable to a shakeout by ⁠rapid advances in AI ‌technology.

(Reporting by Milana ​Vinn in New York, Utkarsh Shetti and Anzar Mehraj in Bengaluru; Editing by Joyjeet ‌Das)

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