Varonis’ $6.3 billion sale shows the risks of growing old in cybersecurity

The $6.3 billion sale of Varonis marks another major Israeli-founded cybersecurity exit, but it is difficult to describe the deal as a dream outcome.

Ultimately, Varonis is being sold at a lower valuation and revenue multiple than Armis, a cybersecurity company that was only a decade old when it agreed to be acquired.

Proofpoint, which is controlled by American investment firm Thoma Bravo, will pay approximately $6.3 billion in cash for Varonis.

In 2021, Varonis shares reached approximately $73, giving the company a market capitalization of more than $10 billion.

The private equity firm is known for acquiring publicly traded software companies, taking them private and seeking to improve their operations and profitability.