Proofpoint is making a billion-dollar bet on the small and midsize business market. The cybersecurity firm announced plans to acquire Hornetsecurity, a German-based provider of Microsoft 365 cloud security tools for SMBs and managed service providers. Valued at $1 billion, the deal is Proofpoint’s biggest acquisition to date and one of the ten largest in cybersecurity history.
The move aligns with the broader strategy of Thoma Bravo, the private equity firm that took Proofpoint private in 2021. It reflects a continued push to grow Proofpoint’s platform globally by targeting underprotected segments of the market with high growth potential.
Why Hornetsecurity?
Hornetsecurity isn’t a household name, but in the world of Microsoft 365 security, it’s a major player. The company specializes in cloud-based email security, compliance, backup, and security awareness training, all designed specifically for Microsoft 365 environments. That focus has paid off.
Hornetsecurity brings in $160 million in annual recurring revenue and is growing at a rate of 20% year over year. It exceeds the “Rule of 60,” a benchmark that signals strong market demand and efficient operations at scale. Just as important, its customer base is deep and wide: more than 125,000 SMBs and 12,000 MSPs across Europe rely on its services.
Proofpoint’s Strategic Expansion
The Hornetsecurity deal marks a major step in Proofpoint’s effort to stretch its platform beyond the enterprise core. For years, the company has focused on protecting large organizations from human-activated threats like phishing and business email compromise. Now, it's taking that same human-centric approach and applying it to a wider, often overlooked segment: SMBs.
Smaller businesses face the same cloud-based threats as large enterprises but typically lack the tools and staff to deal with them. Hornetsecurity gives Proofpoint a direct path into this underprotected market, with a ready-made platform built for Microsoft 365 environments and an AI-powered toolset designed to detect and block attacks before they land.
“As attackers grow more sophisticated and people remain the primary target, organizations need security that protects them wherever they work—across email, cloud applications, and every digital channel,” said Proofpoint CEO Sumit Dhawan in a news release. “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.”
Strengthening the MSP Ecosystem
One of Hornetsecurity’s biggest strengths is its deep bench of managed service providers. The company has built a powerful distribution network that puts its tools directly into the hands of the businesses that need them most.
That’s a big deal for Proofpoint. MSPs play a central role in the SMB security stack, often acting as the de facto IT department for smaller companies. By gaining access to Hornetsecurity’s partner ecosystem, Proofpoint can expand its reach without having to build that infrastructure from scratch.
It also plays into Proofpoint’s broader push toward partner-led go-to-market strategies. With Hornetsecurity in the fold, the company is better positioned to scale through trusted MSP relationships, an approach that’s faster and more efficient than selling directly.
Global Footprint and European Advantage
The acquisition also gives Proofpoint something it’s been building toward for years: a stronger foothold in Europe. Hornetsecurity, based in Germany, has a well-established presence across the region, with deep ties to local SMBs and MSPs. That regional strength now becomes a global asset.
By bringing Hornetsecurity under its wing, Proofpoint gains not just customers but boots-on-the-ground expertise. That’s key in a market where data protection laws like GDPR demand localized compliance and threat response. Hornetsecurity’s knowledge of regional regulations and threat landscapes will help Proofpoint deliver more tailored protection to customers across Europe.
What’s Next for the Combined Entity
Proofpoint hasn’t laid out a full integration roadmap yet, but the direction is clear: Hornetsecurity’s products will strengthen the company’s SMB and MSP offerings, while Proofpoint’s enterprise-grade tools could find new life in smaller markets. There’s an obvious opportunity for cross-selling between the two portfolios, especially in areas like threat protection, compliance, and security awareness.
The combined entity also adds pressure on competitors. Vendors like Mimecast, Barracuda, and Cisco already target the SMB space with Microsoft 365 security tools, but Proofpoint now enters that race with a billion-dollar head start and a platform built specifically for the needs of smaller, cloud-first businesses.
How quickly Proofpoint can execute on this vision remains to be seen. But the intent is clear: the combined entity aims to deliver human-centric security solutions tailored for organizations of all sizes, expanding Proofpoint's reach beyond its traditional enterprise base.
