Proofpoint Buys Wombat for $225M
February 08, 2018
Proofpoint has entered into a definitive agreement to acquire
Wombat Security Technologies, Inc. Founded based on pioneering
research into phishing attacks, Wombat is recognized by Gartner
in the Leaders Quadrant of the Magic Quadrant for Security
Awareness Computer-Based Training. The agreement is subject to
customary closing conditions and is expected to close in the
first quarter of 2018.
“Because threat actors target employees as the weakest link,
companies need to continuously train employees and arm them with
real-time threat data,” said Gary Steele, Proofpoint CEO. “The
acquisition of Wombat gives us greater ability to help protect
our customers from today’s people-centric cyberattacks, as
cybercriminals look for new ways to exploit the human factor. We
are thrilled to welcome Wombat’s employees to the Proofpoint
As cyber criminals increasingly target companies through their
employees, enterprises need to ensure they have the most
effective security in place to enable employees to identify and
avoid attacks that blend in with the way people work today.
Proofpoint is committed to helping customers stay protected from
the ever-growing proliferation of phishing attacks by providing
the industry’s most comprehensive protection for corporate
email, personal email, SaaS applications, and other forms of
communication. With this acquisition, our customers will be able
to use data from the most current phishing campaigns for
simulations, and cyber security education for end users, an
industry-first integration between market-leading protection and
awareness solutions. The integrated solution will become part of
the advanced email solution suite, and will be available in the
first half of 2018.
By combining Wombat’s market-leading technology with
Proofpoint’s industry leading threat detection and intelligence,
enterprises will have the most accurate insights into their
employees’ vulnerability to the real phishing attacks that
target them every day. In addition, by collecting user-reported
phishing threat data from Wombat’s PhishAlarm solution,
Proofpoint intelligence will amplify to include data on phishing
campaigns as seen by non-Proofpoint customers, providing broader
visibility and intelligence to the Proofpoint Nexus platform.
“Cybercriminals didn’t slow down in 2017. In fact, they showed
us how tactical and targeted they can be. The continued
proliferation of phishing and malware, new attacks via SaaS
platforms, and the significant rise in damaging email fraud
attacks all underscore the need to educate and empower end
users,” said Joe Ferrara, CEO of Wombat. “We look forward to
continuing our leadership and innovation as part of Proofpoint
as we continue to lead the market for effective, measurable
security awareness training which changes employee behavior and
reduces enterprise risk.”
upon closing, Proofpoint expects Wombat to have the following
contribution to its financial outlook for the full year 2018
under the ASC 606 accounting standard, as outlined in today’s
•Increase the revenue range by $30 – $32 million.
•Increase the billings range by $30 – $32 million.
•Reduce the Non-GAAP net income range by $5 – 6 million.
•Increase the free cash flow range by $2 million.
Contingent upon closing, for the first quarter of 2018,
Proofpoint also expects Wombat to reduce the Non-GAAP net income
range by $1 million. It expects no other material impact to the
rest of its financial outlook for the quarter.