Cloud security is something that every business needs to take in stride, as the pandemic established that the cloud ultimately kept the world’s economy and global supply chains moving. According to Gartner, worldwide end-user spending on public cloud services is forecasted to grow 18.4% in 2021 to total $304.9 billion, up from $257.5 billion in 2020.
Though, as companies continue to move more data and applications to the cloud, there’s increasing concerns about security when so much content is stored in the cloud. The good news is that rapid innovation in the cloud security portion of the industry is closing the gap.
Analysts project that the security-as-a-service market will be worth $26 billion by 2025, growing at an average rate of 19% in the years between now and then.
Now, Thoma Bravo has announced it is acquiring Proofpoint — the security software vendor — in a deal valued at $12.3 billion. It’s been dubbed the largest ever private equity cloud deal.
Proofpoint is known for email-based security tools but has also increasingly moved into other applications and services managed in the cloud. Founded in 2002, the company went public nine years ago and just passed $1 billion in annual revenue by providing software to stop malware and help businesses protect employees from phishing and other scams across mobile and cloud infrastructure.
In recent years, Thoma Bravo has continued to build an impressive portfolio of cloud software vendors, with a focus on companies that have experienced slowing growth rates. Its cybersecurity portfolio includes Sophos, DigiCert, Imperva, and Barracuda Networks.
The acquisition is set to give Proofpoint the flexibility and resources needed to continue to provide its effective cybersecurity and compliance offerings. The Sunnyvale, California-based company also expects to benefit from San Francisco-based Thoma Bravo’s operating capabilities, capital support, and deep sector experience. The deal is expected to close in the third quarter of 2021.