Mergers and acquisitions across myriad companies have taken a toll in recent years allowing them to sustain their geographic presence across the market. This brings the California based Proofpoint, a cybersecurity firm to take over a Boston based threat management company, ObserveIT.
Proofpoint has reportedly announced acquiring a threat management platform provider with an intent to augment the protection of data across various online platforms. An inside source reports that the proposed purchase would provide unparalleled insights into the user activities via the combination of Proofpoint’s information diversification, threat detection, and high grade intelligence with acquired firm’s lightweight endpoint agent and data risk analytics. Moreover, the closure of the deal is anticipated to take place during the fourth quarter of 2019.
It has been reported that the acquisition has been staked at an economic value of USD 225 million in cash.
The CEO of Proofpoint, Gary Steele, was reportedly quoted stating that the company stands as one of the major firms supporting the organizations in providing visibility into their highly attacked people. Additionally, he further stated that the with the support of Observe IT, the company looks forward in introducing the first truly innovative data loss prevention offerings.
Meanwhile, Mike McKee, the CEO of ObserveIT cited that the company is excited to join the Proofpoint team to offer the customers with advanced solutions to mitigate the insider threats, reduce incident investigation time, and ensure the delivery of user’s confidential and valuable information.
Post the deal announcement, the cybersecurity vendor has publicized its plans of shifting ObserveIT to a subscription-based model, which would mean that the company’s inorganic revenue and billings contribution for the next fiscal year would be limited.
As is proclaimed, the integration of Proofpoint and ObserveIT’s capabilities would enable deal-time detection of irregular interactions across the people, data, and devices which would allow the security teams to analyze and respond to the misuse of the data across various platforms.
According to trusted sources, Proofpoint-ObserveIT offering is likely to be available from 2020 as a part of the latter company’s integrated protection suite.