Proofpoint looks to add MSP coverage with Hornetsecurity

Proofpoint has indicated that its acquisition of fellow security player Hornetsecurity has been made to help increase its options for managed service providers (MSPs). Hornetsecurity has an established proposition for MSPs, providing Microsoft 365 security, data protection, compliance and security awareness solutions that appeal to the SME customer base.

The deal comes in at $1.8bn, with Hornetsecurity currently generating annual recurring revenues in the region of $200m, with the business growing at 20% year on year (YoY).

With the deal closing, Proofpoint can talk of its ambition to become a provider of human-centric security tools via the MSP channel. The vendor is also pitching the move as a demonstration of its commitment to the European market.

“Together, we will extend our human and agent-centric security leadership to safeguard people, AI agents and data, while expanding our reach to SMEs and MSPs with Hornetsecurity’s proven, scalable platform,” said Sumit Dhawan, CEO of Proofpoint. “As threats grow faster and more targeted, our combined expertise will raise the bar for innovation and resilience – helping customers and partners worldwide safeguard what matters most.”

Hornetsecurity has a network of over 125,000 customers across Europe that are being supported by more than 12,000 MSPs and partners giving Proofpoint an opportunity to significantly widen its channel and SME customer bases. The firm has developed its 365 Total protection offering, which provides a platform approach to deliver protection, backup and compliance tools to customers operating in a Microsoft 365 environment.

The plan is for Hornetsecurity to operate as a business unit focused on supporting MSPs and the SME customer base. The business will he headed by its founder and CEO Daniel Hofmann, who will take a role as executive vice-president and general manager within Proofpoint. The management team will also stay in place, which will provide continuity of service to MSPs and customers.

His executive leadership team will remain in place and continue to drive product innovation, go-to-market strategy and partner success via the MSP platform. Customers and partners can expect continuity in service and support, with additional benefits from Proofpoint’s global resources, research and threat intelligence.

“Joining Proofpoint marks a new chapter in our journey,” said Hofmann. “Together, we’re uniquely positioned to deliver the most effective M365 security and data protection to MSPs around the world. Building on our time-tested and well-established channel-centric approach, our combined capabilities, shared threat intelligence and aligned vision will drive a new level of innovation and value for our partners and customers globally.”

Proofpoint has been taking step over the course of this year to ensure it can counter the growing number of artificial intelligence (AI) threats and use AI to improve the effectiveness of its own technologies.

When Proofpoint originally signed the definitive agreement to acquire Hornetsecurity back in May, Dhawan outlined the rationale for the deal: “As attackers grow more sophisticated and people remain the primary target, organisations need security that protects them wherever they work – across email, cloud applications and every digital channel. With the addition of Hornetsecurity, we’re excited to extend our…human-centric security platform to better serve the unique needs of MSPs and SMEs.”