Proofpoint Enters into Definitive Agreement to Acquire Wombat Security Technologies for $225 million in Cash
February 2018 by Emmanuelle Lamandé
Proofpoint, Inc., has entered into a definitive agreement to acquire Wombat Security Technologies, Inc. The agreement is subject to customary closing conditions and is expected to close in the first quarter of 2018.
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, customers will be able to use data from the most current phishing campaigns for simulations, and cyber security education for end users. The integrated solution will become part of the advanced email solution suite, and will be available in the first half of 2018.
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.
Contingent 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 earnings release:
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.