Proofpoint to acquire Hornetsecurity, boosting AI security for SMBs

Proofpoint has entered into a definitive agreement to acquire Hornetsecurity Group, a provider of AI-powered Microsoft 365 (M365) security, data protection, compliance, and security awareness services.

The acquisition will enable Proofpoint to further develop its human-centric security services for small and mid-sized businesses (SMBs) globally via managed service providers (MSPs).

By integrating the expertise, the two companies will work to deliver security solutions designed to protect organisations of all sizes and the people within them.

Hornetsecurity brings over USD $160 million in annual recurring revenue (ARR) to the Proofpoint portfolio, with more than 20 percent year-over-year growth. The company said its performance is above the Rule of 60, considered an indicator of robust market demand and business operations at scale.

Currently, Hornetsecurity serves more than 12,000 channel partners and MSPs and over 125,000 SMBs across Europe.

Proofpoint's services are used by 85 percent of the Fortune 100 and more than half of the Fortune 1000. The combined group will deliver complementary security platforms supported by shared threat intelligence for all regions.

Sumit Dhawan, Chief Executive Officer of Proofpoint, said: "As attackers grow more sophisticated and people remain the primary target, organisations need security that protects them wherever they work—across email, cloud applications, and every digital channel."

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

Daniel Hofmann, founder and Chief Executive Officer of Hornetsecurity, commented: "Hornetsecurity's AI-powered security platform enables thousands of MSPs to deliver enterprise-grade protection to their SMB customers across Europe."

"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. By coming together, we can better serve our partners and customers and extend that protection globally to help MSPs everywhere safeguard their customers' people, data, and operations."

Microsoft 365 continues to be a focus for cyber-attacks as it becomes increasingly central to business operations.

Proofpoint has a recent expanded partnership with Microsoft aimed at delivering scalable, human-centric security services to detect and reduce such threats for their mutual customers.

Hornetsecurity's chief product is 365 Total Protection, a cloud security solution for M365 which enables MSPs to use a multi-tenant unified platform for services such as advanced email security, backup, security awareness, access control, and domain fraud protection.

The Hornetsecurity product team will keep working on these offerings to develop further solutions for partners and clients. Joint use of threat intelligence and AI technology is expected to improve detection of emerging threats for all Proofpoint and Hornetsecurity customers.

Proofpoint plans to make Hornetsecurity's solutions available to MSPs globally after the acquisition is complete. Hornetsecurity will serve as the hub for all MSP and SMB customers in the group, aiming to ensure unified service delivery and drive innovation for this segment.

Daniel Hofmann will remain Chief Executive Officer of Hornetsecurity and continue to lead the company's strategic growth.

The current management team will also stay in place with a focus on expanding cybersecurity products and services.

The transaction is expected to close in the second half of 2025 pending customary closing conditions. The financial terms of the acquisition have not been disclosed.