In early February, Proofpoint announced it was to acquire the security awareness and phishing simulation platform provider Wombat Security Technologies for $225 million in cash. Today, Proofpoint has confirmed that the acquisition has now been completed.
The acquisition will see Wombat Security’s phishing simulation platform, its security awareness computer-based training content, and its phishing reporting tool incorporated into the Proofpoint Nexus system providing a more complete range of anti-phishing solutions for Proofpoint customers.
Proofpoint has acknowledged that while technology is critical to protect against phishing attacks, the ever-changing tactics of cybercriminals means technological solutions cannot provide complete protection. As scammers and phishers develop new techniques for targeting employees, some malicious emails are certain to slip through the net. It is therefore essential for businesses to ensure that they have a human firewall in place. The mindset of employees needs to change, employees need to be taught the skills to recognize email threats, and they also need to be given the tools to report malicious emails.
“The acquisition of Wombat gives us greater ability to help protect our customers from today’s people-centric, social engineering-driven cyberattacks, and we are thrilled to welcome Wombat’s employees to the Proofpoint team,” said Gary Steele, Proofpoint CEO
The acquisition means Proofpoint customers will benefit from industry leading phishing protection through Proofpoint, and industry leading security awareness training thanks to the Wombat Security solutions. Both will be available through the same platform.
On the security awareness training side, the new capabilities allow Proofpoint customers to conduct phishing simulation exercises using real world examples of phishing attacks. Users can be assessed on their abilities and trained to deal with attacks they are likely to experience. Failed phishing tests provide an opportunity for training immediately after they have fallen for a simulated phishing scam. The phishing reporting capability also allows users to report potential phishing emails to their security teams, allowing prompt investigation and mitigation of ongoing attacks.
The acquisition is expected to increase Proofpoint’s 2018 billings from $828 – $833 million to $864 – $869 million. Its revenue range is expected to increase from $149 – $151 million to $151 – $153. Non-GAAP net income will reduce from $8 – $9 million to $7.5 – $8.5 million and there is likely to be no material impact to the previously reported free cash flow of $22-24 million.