Another massive deal in the cyber sector: Cybersecurity company Proofpoint, owned by private equity firm Thoma Bravo, will acquire Israeli information security firm Varonis Systems in a cash deal valued at approximately $6.3 billion.Under the terms of the agreement, Varonis shareholders will receive $49.75 per share in cash, a price reflecting a 52% premium over the stock’s closing price on June 22, the day preceding the initial reports and estimates regarding a potential sale of the company.The current offer values Varonis’s market cap at $5.71 billion, and in response to the announcement, the company’s shares rose by about 2.7% in late trading. The deal, which is expected to officially close during the first half of 2027, comes against the backdrop of a global trend in which organizations and companies are significantly increasing their cybersecurity budgets to tackle rising cybercrime and the growing use of artificial intelligence technologies for data theft.Varonis is an Israeli-American company founded in 2005 by Yaki Faitelson and Ohad Korkus, who previously worked at NetVision and NetApp. The company is headquartered in Miami, while its research and development center operates out of Herzliya. The company offers advanced digital security services, including data classification in cloud storage systems and tracking employee behavior. “Our mission is to secure artificial intelligence and the data that feeds it. By joining forces with Proofpoint, we will be able to achieve this goal faster than ever,” said Faitelson, cofounder and CEO of Varonis.Initial reports regarding the deal began several months ago, when Reuters news agency reported in September that Proofpoint was in advanced talks to acquire Varonis. Even earlier, in June, various media outlets reported that Varonis was exploring a potential sale following growing interest from private equity firms, reports that led to a spike of about 30% in the company’s stock at the time.On the purchasing side, Proofpoint, which develops and markets software to help companies defend against cyberattacks, was itself acquired by Thoma Bravo in 2021 in a deal that took the company private at a valuation of approximately $12.3 billion. As part of the current transaction, investment bank Goldman Sachs served as financial adviser to Varonis, while BofA Securities, Morgan Stanley, J.P. Morgan, UBS, and Mizuho Securities USA advised Proofpoint.In parallel with the acquisition announcement, Varonis stated that it would publish its financial results for the third quarter on November 3, but clarified that due to the emerging deal, it will not hold an investor conference call for the earnings 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