Proofpoint to acquire Cloudmark
Posted: 8 November 2017 | Source: Proofpoint
Proofpoint, Inc. (NASDAQ:PFPT), a leading next-generation cybersecurity company, has entered into a definitive agreement to acquire Cloudmark, Inc., a leader in messaging security and threat intelligence for Internet Service Providers (ISPs) and mobile carriers worldwide. The transaction is expected to close in the fourth quarter of 2017 and is subject to customary closing conditions, including Hart-Scott-Rodino merger review and any other required regulatory approvals.
With visibility spanning ISPs and mobile carriers, Cloudmark correlates email threat telemetry data into its Global Threat Network, including intelligence derived from malware campaigns and targeted attacks like spear phishing and business email compromise (BEC). As part of the acquisition, Cloudmark's Global Threat Network will be incorporated into Proofpoint's Nexus platform, which powers Proofpoint's product effectiveness across the portfolio covering email, social media, mobile and SaaS products.
"We are excited to welcome Cloudmark's ISP and mobile carrier customers to Proofpoint," said Gary Steele, Chief Executive Officer of Proofpoint. "By combining the threat intelligence from Cloudmark with the Proofpoint Nexus platform, we can better protect all of our customers - both enterprises and ISPs - from today's rapidly evolving threats."
Cloudmark's Global Threat Network data will be incorporated into Proofpoint Nexus including:
- Messaging threat telemetry from billions of daily emails.
- Threat intelligence around malicious domains that will complement Proofpoint's Email Fraud Defense (EFD) and Domain Defense products.
- Visibility into fraudulent and malicious SMS messages directed to mobile carriers worldwide.
Cloudmark and Proofpoint customers will benefit from increased effectiveness across the product suite. Proofpoint plans to continue Cloudmark's service provider products with an ongoing roadmap leveraging the combined capabilities of both companies.
"Messaging has been the number one threat vector for years, but with ransomware and BEC, it's never been a more urgent issue," said Jason Donahue, Chief Executive Officer of Cloudmark. "We're thrilled to be continuing our work to fight advanced threats in messaging as part of Proofpoint."
Proofpoint expects Cloudmark to have no material impact to its financial outlook for the fourth quarter and full year 2017, which was provided on October 19, 2017.
Contingent upon closing, Proofpoint expects Cloudmark to have the following contribution to its financial outlook for the full year 2018, also provided on October 19, 2017:
- Increase the revenue range by $20 - $25 million to $664 - $673 million.
- Increase the billings range by $20 -$25 million to $818 - $827 million.
- No material impact to Non-GAAP Net Income or Free Cash Flow.