Proofpoint, Inc., (NASDAQ: PFPT), a leading next-generation cybersecurity and compliance company, has entered into a definitive agreement to acquire Meta Networks, an innovator in zero trust network access (ZTNA). With this acquisition, Proofpoint will strengthen its cloud-based architecture and people-centric security platform, enabling customers to better protect their people and the applications and data they access beyond the traditional perimeter. The agreement is subject to customary closing conditions and is expected to close in the second quarter of 2019.
“As cyber attacks primarily target people, and organizations continue to move their infrastructure to the cloud, the compromise of a single user all too often leads to a full enterprise breach. Limiting employee and contractor access to only authorized resources, rather than the entire corporate network, is a critical control in a people-centric security model,” said Proofpoint CEO Gary Steele. “By combining Meta Networks’ innovative zero trust network access technology with our people-centric security capabilities, Proofpoint will make it far simpler for enterprises to precisely control employee and contractor access to on-premises, cloud, and consumer applications. We are thrilled to welcome Meta Networks employees to the Proofpoint team.”
Proofpoint intends to integrate Meta Networks’ ZTNA technology with its cloud access security broker (CASB) and web isolation product lines to offer customers a comprehensive cloud access and security platform. The acquisition of Meta Networks will add approximately 20 technical contributors to Proofpoint’s growing presence and team in Israel.
“Protecting people and resources beyond the traditional perimeter is perhaps the most critical security requirement in the cloud era,” said Etay Bogner, founder and CEO of Meta Networks. “Together with Proofpoint, we will continue to realize a security vision that adapts to the way both threats and infrastructure are moving: to the cloud. Proofpoint is at the forefront of this transformation and we are very excited to become a part of an incredible team.”
The purchase price for the transaction is approximately $111 million in cash and approximately $9 million in Proofpoint common stock and options. The Proofpoint common stock will be issued and a certain portion of the cash will be paid subject to satisfaction of certain employment terms. The closing is subject to customary closing conditions and is expected to occur in the second quarter of 2019. Proofpoint's acquisition of Meta Networks is not expected to materially impact its financial guidance or results of operations for the year ending December 31, 2019. Proofpoint is considering the repatriation of acquired intellectual property associated with this acquisition which – if executed – would result in a one-time cash income tax expense during the third or fourth quarter of the year.