Proofpoint, the Thoma Bravo–owned email and collaboration security company, is reportedly in talks to buy Varonis.
- In June, Bloomberg reported that Varonis had received expressions of interest from Thoma Bravo, Blackstone and Vista Equity Partners and was working with advisers as it considered strategic options, including a sale.
- Miami-headquartered Varonis spent the past three years converting a legacy, self-hosted license business into a cloud subscription model.
Shares of Varonis Systems (VRNS) jumped 10% on Wednesday, clocking its best day since early February, following a report that Proofpoint, the Thoma Bravo–owned email and collaboration security company, is in talks to buy it.
The Wall Street Journal reported the talks, citing people familiar with the matter. The report noted that there are no guarantees a deal could come together. If completed, the deal would combine two of the industry’s more complementary data-protection franchises.
In June, Bloomberg reported that Varonis had received expressions of interest from Thoma Bravo, Blackstone and Vista Equity Partners and was working with advisers as it considered strategic options, including a sale. That earlier report lifted the stock but did not produce an announced deal.
A SaaS Reset, Then An AI Push
Miami-based Varonis spent the past three years shifting from old-style licensed software, which customers installed on their own servers, to a cloud subscription model known as SaaS, or software-as-a-service. In SaaS, customers pay a recurring fee, and Varonis hosts the product. The company finished that switch more than two years ahead of plan. By the end of 2025, SaaS accounted for 86% of its annual recurring revenue, the subscription base investors watch most closely. Varonis has said the remaining self-hosted products will be retired on Dec. 31, 2026.
The company has also bought its way into adjacent markets: SlashNext for email threat detection, Cyral for database monitoring, and AllTrue.ai in February 2026 to secure AI agents.
In the second quarter of 2026, the company’s revenue rose 18% to $180 million. SaaS annual recurring revenue reached $726 million, up 52% year over year, or 25% excluding on-premises conversions. Management raised full-year guidance. The company held more than $900 million in cash as of June 30.
Why Proofpoint Wants It
Proofpoint, taken private by Thoma Bravo in 2021 for $12.3 billion, is best known for protecting email and collaboration. Under CEO Sumit Dhawan, it has moved into data security and AI-agent governance, including the acquisition of Acuvity. Combining that stack with Varonis would give Proofpoint control over the data itself, not only the channels through which it moves.
How Did VRNS Retail Traders React?
On Stocktwits, retail sentiment around VRNS rose from ‘bearish’ to ‘neutral’ over the past 24 hours, while message volume remained at ‘normal’ levels.
VRNS stock has gained 43% year-to-date.
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