Sunnyvale, CA-based cybersecurity firm Proofpoint has announced it has acquired the phishing simulation and security awareness company Wombat Security Technologies. The deal is for $225 million in cash and is expected to close in Q1, 2018.
Proofpoint is already a major player in the cybersecurity market providing advanced threat protection, encryption, data loss prevention, email security and many other digital security services to businesses. While the firm has concentrated on technologies to protect businesses from malware, ransomware, and phishing, the firm does not provide services for its customers to help them tackle the human element of phishing and malware defenses.
While it is possible to prevent the majority of malicious emails from reaching inboxes with security software, it is inevitable that some malicious emails will slip past those security controls. When that happens, employees need to be able to recognize threats and take the appropriate action.
The acquisition of Wombat Security Technologies plugs that gap and allows Proofpoint to provide a more comprehensive security service for its customers.
Research conducted by multiple phishing simulation companies, including Wombat and PhishMe, has shown that susceptibility to phishing attacks can be reduced by more than 90% when employees receive security awareness training and have their knowledge tested with simulated phishing emails.
Wombat Security Technologies was recently included in Gartner’s Leaders Quadrant of the Magic Quadrant for Security Awareness Computer-Based Training for its ability to execute and completeness of vision. The firm was therefore an attractive target for Proofpoint.
“The acquisition of Wombat gives us greater ability to help protect our customers from today’s people-centric cyberattacks, as cybercriminals look for new ways to exploit the human factor. We are thrilled to welcome Wombat’s employees to the Proofpoint team,” said Gary Steele, Proofpoint CEO.
“We look forward to continuing our leadership and innovation as part of Proofpoint as we continue to lead the market for effective, measurable security awareness training which changes employee behavior and reduces enterprise risk,” said Joe Ferrara, CEO of Wombat.
Proofpoint plans to incorporate Wombat’s phishing simulation platform and its security awareness training material into its advanced email solution suite in the first half of 2018.
Proofpoint expects to see a significant return on its $225 million investment. The Sunnydale firm believes the acquisition of Wombat will help it increase revenue range by between $30 and $32 million, increase billings by $30-$32 million and increase free cash flow by $2 million.