Cybersecurity firm Proofpoint eyes pre-IPO funding as it plans a public comeback

Back in April 2021, we covered ProofPoint after the cybersecurity firm was acquired by private equity giant Thoma Bravo for $12.3 billion. At the time, it was the largest private equity deal in software history. Fast forward three years later, Proofpoint is now eyeing a return to the public markets.

According to a CNBC report, Proofpoint is exploring pre-IPO financing options and considering mergers and acquisitions of smaller cybersecurity companies as part of its strategy to go public in 2026, as shared by CEO Sumit Dhawan.

“We are looking at potentially exploring public markets sometime in the next 12 to 18 months,” said Dhawan, who took over as CEO in November 2023, two years after the Thoma Bravo acquisition. He also mentioned that the timing of the IPO would depend on broader market conditions, as well as the results of the 2024 U.S. presidential election.

Under Dhawan’s leadership, Proofpoint has been pursuing strategic opportunities, including the acquisition of smaller cybersecurity firms, to drive industry consolidation. Dhawan highlighted that the cybersecurity market is crowded with too many players, and Proofpoint is focused on acquiring companies that align well with its strategy, provided the price is right, CNBC reported.

“It’s happened in many other technology spaces — it happened with infrastructure, it has happened in the application platform space — where you start building fewer providers but richer platforms and, as a result, there will be consolidation,” Dhawan said in an exclusive interview with CNBC this week.

Dhawan added, “There are at this point in time, 2,000 or so non-profitable cybersecurity companies that are venture-backed, so clearly they’ll either get consolidated or potentially not exist. Because there’s no way any market can have that many players. So it’s going to happen, it’s bound to happen.”

Founded in 2002 by Eric Hahn, Proofpoint, based in Sunnyvale, California, offers cloud-based solutions for email security, e-discovery, and compliance, helping businesses safeguard their sensitive data. Over nine years, the company raised $85.5 million across six funding rounds, with the latest in 2008.

Today, Proofpoint helps businesses worldwide defend against targeted threats, secure their data, and build resilience against cyberattacks. Its customer base includes more than half of the Fortune 1000, who trust Proofpoint for its people-focused security and compliance solutions that cover email, cloud services, social media, and the web.