Proofpoint Buys Cloudmark for $110M
November 8, 2017
has entered into a definitive agreement to acquire Cloudmark, a
player in messaging security and threat intelligence for
Internet Service Providers (ISPs) and mobile carriers worldwide.
The transaction is expected to close in the fourth quarter of
2017 and is subject to customary closing conditions, including
Hart-Scott-Rodino merger review and any other required
With visibility spanning ISPs and mobile carriers, Cloudmark
correlates email threat telemetry data into its Global Threat
Network, including intelligence derived from malware campaigns
and targeted attacks like spear phishing and business email
compromise (BEC). As part of the acquisition, Cloudmark’s Global
Threat Network will be incorporated into Proofpoint’s Nexus
platform, which powers Proofpoint’s product effectiveness across
the portfolio covering email, social media, mobile and SaaS
“We are excited to welcome Cloudmark’s ISP and mobile carrier
customers to Proofpoint,” said Gary Steele, Chief Executive
Officer of Proofpoint. “By combining the threat intelligence
from Cloudmark with the Proofpoint Nexus platform, we can better
protect all of our customers – both enterprises and ISPs – from
today’s rapidly evolving threats.”
Cloudmark’s Global Threat Network data will be incorporated into
Proofpoint Nexus including:
•Messaging threat telemetry from billions of daily emails.
•Threat intelligence around malicious domains that will
complement Proofpoint’s Email Fraud Defense (EFD) and Domain
•Visibility into fraudulent and malicious SMS messages directed
to mobile carriers worldwide.
Cloudmark and Proofpoint customers will benefit from increased
effectiveness across the product suite. Proofpoint plans to
continue Cloudmark’s service provider products with an ongoing
roadmap leveraging the combined capabilities of both companies.
“Messaging has been the number one threat vector for years, but
with ransomware and BEC, it’s never been a more urgent issue,”
said Jason Donahue, Chief Executive Officer of Cloudmark. “We’re
thrilled to be continuing our work to fight advanced threats in
messaging as part of Proofpoint.”
Proofpoint expects Cloudmark to have no material impact to its
financial outlook for the fourth quarter and full year 2017,
which was provided on October 19, 2017.
upon closing, Proofpoint expects Cloudmark to have the following
contribution to its financial outlook for the full year 2018,
also provided on October 19, 2017:
•Increase the revenue range by $20 - $25 million to $664 - $673
•Increase the billings range by $20 -$25 million to $818 - $827
•No material impact to Non-GAAP Net Income or Free Cash Flow.