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Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Proofpoint announced on February 6, 2018, that it would acquire Wombat Security Technologies for $225 million in cash. The deal closed on February 28, 2018, making Wombat a wholly owned Proofpoint subsidiary. Proofpoint’s stated goal was to combine its threat protection and intelligence with Wombat’s phishing simulations and security-awareness training.
When did Proofpoint acquire Wombat Security?
Proofpoint announced the definitive agreement on February 6, 2018. Its SEC filing records the acquisition closing on February 28; Proofpoint announced the completion on March 1. Wombat survived the merger as a wholly owned subsidiary of Proofpoint. (SEC Form 8-K; completion announcement)
How much did Proofpoint pay for Wombat?
Proofpoint announced a purchase price of $225 million in cash. Its SEC filing described aggregate consideration of approximately $225 million, subject to customary adjustments. (February 6 announcement; SEC Form 8-K)
A later Proofpoint filing reported $225.366 million of consideration transferred, net of $13.452 million in cash acquired. That is a later accounting measure of the 2018 acquisition, not a revised announcement of the cash purchase price. (Proofpoint 2019 Form 10-K, filed in 2020)
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Why did Proofpoint buy Wombat Security?
Wombat developed phishing simulations and computer-based security-awareness training. Proofpoint said the acquisition would pair those capabilities with its threat protection and threat intelligence. The intended link was practical: use current phishing campaign data to make simulations more relevant, and use PhishAlarm reports from employees to improve visibility into suspected attacks. Proofpoint later described using detected attacks in simulations and workflows to investigate user-reported phishing. (acquisition announcement; completion announcement; Proofpoint 2019 Form 10-K)
In the acquisition announcement, Proofpoint CEO Gary Steele said the deal would help protect customers from “today’s people-centric cyberattacks” and attempts to exploit the human factor. That was the company’s rationale for the transaction, rather than proof of a measured outcome. Wombat CEO Joe Ferrara said the company would continue its security-awareness training work as part of Proofpoint. (Proofpoint’s February 6, 2018 announcement)
Proofpoint also gave estimated financial effects for 2018: it expected the deal to add $30–$32 million to both its revenue range and billings range, reduce its non-GAAP net income range by $5–$6 million, and increase free cash flow by $2 million. These were forward-looking guidance estimates in the announcement, not reported realized results. (Proofpoint’s February 6, 2018 announcement)
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What happened to Wombat Security after the acquisition?
Wombat continued as a wholly owned subsidiary after the deal closed. In January 2019, Proofpoint announced that the Wombat brand had evolved into Proofpoint Security Awareness Training. The transition placed Wombat’s simulation and training capabilities under the Proofpoint brand. (Proofpoint’s January 17, 2019 announcement)
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