Claudia Assis | February 06, 2018

Proofpoint agrees to buy Wombat Security Technologies for $225 million

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Proofpoint Inc. PFPT, +1.59% said late Tuesday it had agreed buy Wombat Security Technologies Inc. for $225 million in cash. The deal is expected to close in the first quarter, the company said. The acquisition gives Proofpoint a foothold in the phishing simulation and security awareness training market. "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," Proofpoint said in a statement. The company said it expects the deal to increase its 2018 revenue by $30 million to $32 million, and billings by $30 million to $32 million. Also Tuesday, Proofpoint reported an adjusted profit of 29 cents a share on sales of $145.4 million in the fourth quarter. That compares with adjusted earnings of 18 cents a share on sales of $106.8 million in the year-ago period. Analysts polled by FactSet had expected adjusted earnings of 20 cents a share on sales of $139.6 million. Proofpoint shares were flat in the extended session after ending the regular trading day up 3.6%.

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