Thoma Bravo explores $2 billion-plus sale of Foundation Software, sources say

Thoma Bravo-owned Proofpoint is in talks to acquire cybersecurity firm Varonis Systems, a source familiar with the situation revealed to Reuters on Wednesday. Varonis, valued at approximately $5 billion, saw its shares increase by more than 10 percent following the news. Thoma Bravo, the private equity firm behind the deal, did not comment, while Proofpoint and Varonis remained silent.

Varonis, based in Miami, provides cybersecurity services, such as data classification and behavior tracking, and employs over 2,400 individuals in 14 offices worldwide. In 2021, Thoma Bravo acquired Proofpoint and took it private for around $12.3 billion. Recently, the cybersecurity sector has experienced a slowdown in mergers and acquisitions, as the industry faces potential disruption from rapid advancements in artificial intelligence.