In a strategic bid for growth and market consolidation, Proofpoint CEO Sumit Dhawan, who took the helm in 2022 following the company’s $12.3 billion acquisition by Thoma Bravo, is steering the cybersecurity firm towards potential mergers and acquisitions. Dhawan revealed to CNBC that Proofpoint is also evaluating pre-IPO financing options as it eyes a return to public markets in 2026.
Since the 2021 buyout, Dhawan has emphasized pursuing strategic opportunities, citing a crowded cybersecurity market filled with non-profitable, venture-backed firms ripe for consolidation. He highlighted the parallels with other technology sectors where fewer, richer platforms dominate after similar consolidations.
Dhawan noted a current discrepancy in valuation expectations between buyers and sellers in the cybersecurity sector, yet he remains optimistic about promising acquisition targets. Reflecting on Proofpoint’s ambitions, Dhawan said the firm differentiates itself with a strong balance of growth and profitability, aiming for a double-digit expansion and leadership in its market.
Founded in 2002, Proofpoint previously went public in 2012 but was delisted following its acquisition by Thoma Bravo in 2021 due to concerns over revenue growth. Now, Proofpoint is preparing for multiple financing rounds to widen ownership beyond its current private equity stakeholders, including private placements as a consideration.
Dhawan underscored that while the IPO’s timing would largely depend on market conditions and the 2024 U.S. presidential election outcome, Proofpoint is distinct in its preparation compared to typical IPO-seeking firms, with its established profile and consolidated market positioning.
Original Story https://www.cnbc.com/2024/10/01/cybersecurity-firm-proofpoint-explores-external-funding-as-it-eyes-ipo.html
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