In a major expansion into the small and medium-sized business (SMB) cybersecurity market, Proofpoint has announced its acquisition of Hornetsecurity for more than $1 billion, marking one of the largest deals to date in the managed service provider (MSP) security segment. The agreement, announced in May 2025, is expected to close in the second half of the year, with Hornetsecurity’s CEO Daniel Hofmann maintaining his leadership position.
The strategic acquisition positions Proofpoint to markedly improve its presence in the SMB sector as it complements its established enterprise security offerings. Hornetsecurity, a pan-European provider of AI-powered security solutions for Microsoft 365, brings an extensive network of over 12,000 MSPs and channel partners, serving more than 125,000 customers globally. The company’s annual recurring revenue exceeds $160 million, with growth rates surpassing 20 percent yearly. The company’s impressive trajectory includes nine strategic acquisitions that have significantly enhanced its cloud cybersecurity portfolio. The move represents a big strategic leap forward, according to Proofpoint CEO Sumit Dhawan.
Proofpoint’s billion-dollar acquisition of Hornetsecurity strategically expands its SMB reach while gaining 12,000 MSPs and AI-powered Microsoft 365 security solutions.
The merger consolidates both companies’ technological capabilities, creating a comprehensive security suite that encompasses email security, user protection, data loss prevention, and security awareness training. This integration particularly strengthens solutions for organizations shifting to cloud-based productivity platforms, as Hornetsecurity’s strong European presence combined with Proofpoint’s U.S. market leadership establishes strong transatlantic coverage. With cyberattacks causing data breach costs averaging $4.35 million, this merger addresses critical security needs for businesses of all sizes.
Industry analysts view this acquisition as a catalyst for broader changes in the SMB cybersecurity environment. The combined entity will provide MSPs with improved cloud-native security solutions tailored to smaller organizations’ needs, as it leverages Proofpoint’s global reach and Hornetsecurity’s established MSP ecosystem for better market penetration.
The deal follows Proofpoint’s pattern of strategic acquisitions, including previous purchases of Illusive Networks and Dathena, as the company continues to expand its security capabilities. With Hornetsecurity’s expertise in Microsoft 365 security and cloud solutions, the acquisition directly addresses growing demand among SMBs for modern threat protection, as it potentially triggers further consolidation in the SMB-focused security segment.
