Thoma Bravo-owned Proofpoint is in discussions to acquire cybersecurity software provider Varonis Systems, according to a report by Reuters citing an unnamed person familiar with the matter.
Varonis, which has a market capitalisation of around $5bn, saw its shares rise more than 10% following news of the potential transaction.
Thoma Bravo reportedly declined to comment, while Proofpoint and Varonis reportedly did not immediately respond to requests for comment.
Miami-headquartered Varonis provides cybersecurity software focused on protecting and managing corporate data. Its platform includes tools for classifying data stored in cloud environments and monitoring employee behaviour. The company employs more than 2,400 people across 14 offices worldwide.
The potential deal follows reports in June that Varonis was exploring strategic alternatives after receiving interest from private equity investors. Its shares subsequently climbed around 30%.
For Thoma Bravo, a combination of Proofpoint and Varonis would bring together two businesses with complementary capabilities in data security.
Proofpoint provides software designed to protect organisations from cyber threats, while Varonis focuses on identifying, securing and governing sensitive data. Combining the platforms could give customers a broader suite of tools for protecting corporate information and controlling access to it.
Thoma Bravo agreed to take Proofpoint private in 2021 in a transaction that valued the cybersecurity company at approximately $12.3bn.
