Proofpoint acquires Cloudmark for $100M in cybersecurity consolidation play
As malicious teams proceed to change into extra refined in their hacking strategies, cybersecurity efforts try to broaden in their attain, and that’s resulting in some consolidation in the sphere. Today, cybersecurity agency Proofpoint — which supplies SaaS merchandise to guard companies’ electronic mail, social media and different providers — introduced that it will pay $100 million to amass Cloudmark, one other agency that gives safety safety for messaging providers, focusing particularly on serving the ISP and cellular provider markets.
We are excited to welcome Cloudmark’s ISP and mobile carrier customers to Proofpoint, mentioned Gary Steele, Chief Executive Officer of Proofpoint. By combining the threat intelligence from Cloudmark with the Proofpoint Nexus platform, we can better protect all of our customers – both enterprises and ISPs – from today’s rapidly evolving threats.
As we have now mentioned earlier than, lately huge knowledge is the secret, and this deal is as a lot an acquisition to broaden merchandise and buyer attain as it’s to broaden knowledge sources to have the ability to analyse and fight malicious assaults extra successfully. Cloudmark’s Global Threat Network sources telemetry knowledge from billions of emails and messages every day to assist establish assaults, and as a part of the deal, will probably be rolled into Proofpoint’s main product, the Nexus platform.
Cloudmark is an outdated stalwart in the safety area, based in 2001. It had raised $39 million in funding from traders that included Nokia Growth Partners, Ignition Partners, FTVentures and Summit Partners. Proofpoint has been public since 2012 and at present has a market cap of over $four billion. It mentioned that the deal will improve its full-year income vary by $20 million to $25 million to between $664 million and $673 million.
Getting its begin initially in scanning electronic mail and serving to block spam, Cloudmark later moved into different areas like figuring out and blocking malicious SMS messages. The rising reputation of messaging functions (each native and downloaded apps) has made them a recurring goal for malware and dodgy hyperlinks, a pattern that appears like it’s not disappearing, and analysts estimate that there will probably be $5.5 billion spent by enterprises on messaging safety merchandise alone (other than different safety options) by 2022.
Messaging has been the number one threat vector for years, but with ransomware and BEC, it’s never been a more urgent issue, mentioned Jason Donahue, Chief Executive Officer of Cloudmark, in a press release. We’re thrilled to be continuing our work to fight advanced threats in messaging as part of Proofpoint.
The transaction is anticipated to shut in This autumn 2017, pending regulatory approval, the businesses mentioned.
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