Exhibit 99.1
Proofpoint Enters into Definitive Agreement to Acquire ObserveIT for $225 Million in Cash; Extending Leadership in People-Centric Security and Compliance to Deliver Post-Perimeter Data Loss Prevention
Proofpoint’s market-leading information protection capabilities extended to prevent data risks and insider threats across email, cloud, and the endpoint
Sunnyvale, Calif.—November 3, 2019 – Proofpoint, Inc., (NASDAQ: PFPT), the leader in people-centric cybersecurity, has entered into a definitive agreement to acquire ObserveIT, the leading insider threat management platform. Closing of the transaction is expected to occur late in the fourth quarter of 2019, and is subject to customary closing conditions, including Hart-Scott-Rodino merger review, and any other required regulatory approvals.
With this acquisition, Proofpoint will extend itsdata loss prevention (DLP) capabilities with endpoint joining email, CASB, anddata-at-rest to form an enhanced enterprise DLP offering. The combination of ObserveIT’s leading lightweight endpoint agent technology and data risk analytics with Proofpoint’s industry leading information classification, threat detection, and intelligence, will give enterprises unprecedented insights into user activity with their sensitive data, wherever it resides. In tandem, Proofpoint will invest in ObserveIT’s leading insider threat management solution, which empowers security teams to detect, investigate, and prevent potential insider threat incidents by delivering real-time alerts, and actionable insights into user activity in oneeasy-to-use solution.
“Today’s ObserveIT acquisition underscores Proofpoint’s commitment to providing organizations with people-centric cybersecurity and compliance solutions that protect what matters: their people and the data they have access to, in a post-perimeter, cloud-first world,” said Gary Steele, chairman of the board and chief executive officer of Proofpoint. “Defending data requires the ability to detect risky insider threat behavior and risky user activity, and swiftly mitigate risk across cloud apps, email, and endpoints. We are the only security company that provides organizations with deep visibility into their most attacked people—and with ObserveIT, we will bring to market the first truly innovative enterprise DLP offering in years. We are thrilled to welcome ObserveIT’s employees and customers to Proofpoint.”
More than99% of today’s cyberattacks require human interaction to work, making individual users the last line of defense as cyber criminals increasingly targeting companies through their employees. With more and more users accessing data from endpoints off the corporate network in both sanctioned and unsanctioned cloud apps, organizations need to ensure they have the most effective people-centric security controls in place to understand how, when, and where users interact with critical data and intellectual property. As highlighted in the 2019 Verizon Data Breach Investigation report, this is particularly critical to avoid data breaches that leverage compromised credentials (29% of total breaches), compromised endpoints (32%), or are perpetrated by malicious insiders (34%).1
Further, as more companies are encouraging their employees to work from anywhere, on any device, enterprise data loss prevention (DLP) must evolve from a legacy, perimeter-based control and compliance checkbox to an intelligent, activity-based solution to detect and respond to risks to data across cloud apps, email, and lightweight endpoint agents.
| 1 | https://enterprise.verizon.com/resources/reports/dbir/ |
