Proofpoint Buys Hornetsecurity, A Microsoft 365 Security Specialist For $1 Billion

Cybersecurity giant Proofpoint has announced its agreement to acquire Hornetsecurity Group, a leading European provider of AI-powered Microsoft 365 security solutions.

The deal, reportedly valued at $1 billion, is expected to close in the second half of 2025, although exact financial terms were not publicly disclosed in the announcement.

This strategic move significantly strengthens Proofpoint’s position in delivering human-centric security solutions to small and mid-sized businesses worldwide.

The acquisition marks a significant milestone in Proofpoint’s global growth strategy, particularly in expanding its presence in the small and mid-sized business (SMB) segment through managed service providers (MSPs).

Hornetsecurity brings impressive financial performance to the table with over $160 million in annual recurring revenue (ARR) and more than 20 percent year-over-year growth.

“With the addition of Hornetsecurity, we’re excited to extend our industry-leading, human-centric security platform to better serve the unique needs of MSPs and SMBs,” said Sumit Dhawan, CEO of Proofpoint.

“We look forward to deepening our investment in the European markets as part of our global growth strategy.”

Hornetsecurity currently provides solutions to over 12,000 channel partners and MSPs, serving more than 125,000 SMBs across Europe.

This contrasts with Proofpoint’s established presence in the enterprise sector, where it counts 85 percent of Fortune 100 and over half of Fortune 1000 companies among its clients.

Complementary Solutions Strengthen Microsoft 365

The deal comes at a time when Microsoft 365 has become central to business operations and consequently a prime target for cyberattacks.

Hornetsecurity’s flagship product, 365 Total Protection, provides comprehensive cloud security for Microsoft 365, offering MSPs a multi-tenant platform to deliver integrated services including advanced email security, backup, security awareness, and domain fraud protection.

Daniel Hofmann, founder and CEO of Hornetsecurity, explained the strategic fit: “With the breadth of human-centric risks only growing, joining Proofpoint is a natural next step in our journey to build the strongest global offering of M365 security services.”

The combined companies plan to leverage shared threat intelligence and AI models to enhance their detection capabilities against cyber threats, benefiting both customer bases.

Proofpoint recently expanded its partnership with Microsoft, further aligning with Hornetsecurity’s focus on Microsoft 365 security.

Leadership Continuity

Following the acquisition, Hornetsecurity will serve as the central hub for all MSP and SMB customers within the Proofpoint group, ensuring a unified approach to service delivery for these market segments.

Daniel Hofmann will remain CEO of Hornetsecurity, with the existing management team staying in place to drive continued growth and innovation.

According to the Report, Proofpoint intends to leverage its global reach to expand the availability of Hornetsecurity’s platform worldwide, advancing their shared mission of protecting organizations’ people, data, and operations.

The acquisition aligns with Proofpoint’s strategy of providing human-centric security across all organization sizes, from enterprise to SMB.

The deal represents one of the larger acquisitions in the cybersecurity space this year, highlighting the growing importance of specialized security solutions for cloud-based productivity suites like Microsoft 365.

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