Thoma Bravo-backed Proofpoint Inc. has secured $1.25 billion in financing to support its acquisition of Varonis Systems Inc., according to sources familiar with the matter. The debt financing will be led by JPMorgan Chase & Co. and UBS Group AG, who will manage the sale of high-yield bonds in the market at a later date.
The deal is part of Proofpoint's strategy to strengthen its position in the cybersecurity sector by acquiring Varonis, another prominent player in the industry. The transaction is expected to close in the first half of 2027, pending final approvals and market conditions.
Sources close to the deal requested anonymity due to the private nature of the transaction. The financing arrangement underscores the growing trend of leveraged buyouts in the tech sector, particularly in cybersecurity, where consolidation is becoming more common.