Courtney Linder | February 07, 2018

Silicon Valley cybersecurity firm acquires Pittsburgh's Wombat for $225M

As seen in the Pittsburgh Post Gazette...

Sunnyvale, Calif.-based cybersecurity firm Proofpoint will acquire Strip District-based Wombat Security Technologies Inc. for $225 million, the companies announced Tuesday afternoon.

Wombat Security emerged in June 2008 as a spinoff of Carnegie Mellon University. Three faculty members at the School of Computer Science created the startup to address the human element of phishing, ultimately building training solutions for cybersecurity.

“Because threat actors target employees as the weakest link, companies need to continuously train employees and arm them with real-time threat data,” Gary Steele, Proofpoint CEO, said in a release.

“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. We are thrilled to welcome Wombat’s employees to the Proofpoint team.”

To date, the company has received $10.8 million in funding, according to Crunchbase, a platform for firms to self-report capital-raising rounds.

Proofpoint said in a release that it intends to better protect its customers’ corporate email, personal email, SaaS applications and other forms of communication through the acquisition of Wombat Security. The new email solution suite will be available in early 2018.

The agreement between Proofpoint and Wombat Security is expected to close by the end of the first quarter of 2018.

Proofpoint said it expects the acquisition will increase its revenue range $30 million to $32 million by the end of its 2018 fiscal year contingent on the deal closing, according to its press release.

“Cybercriminals didn’t slow down in 2017. In fact, they showed us how tactical and targeted they can be,” Joe Ferrara, CEO of Wombat, said in a release. “We look forward to continuing our leadership and innovation as part of Proofpoint as we continue to lead the market for effective, measurable security awareness training which changes employee behavior and reduces enterprise risk.”

Read this article in the Pittsburgh Post Gazette