Stacey Federoff | February 06, 2018

Wombat Security acquired for $225M by Silicon Valley cybersecurity company

As seen on Pittsburgh Business Times...

A Pittsburgh-based security awareness and training software company was acquired for $225 million by a Silicon Valley cybersecurity company.

Wombat Security Technologies, a Carnegie Mellon spin-off founded based on research into phishing attacks, has entered into an agreement with Proofpoint, Inc. (NASDAQ: PFPT), according to a news 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," said Proofpoint CEO Gary Steele in a prepared statement. "We are thrilled to welcome Wombat’s employees to the Proofpoint team.”

The company plans to incorporate Wombat's work into an advanced email solution suite, which will be available in the first half of 2018, according to the release.

With the acquisition, Proofpoint plans to increase revenue by $30 to $32 million, the release said.

With an increase in the use of phishing and malware, Wombat CEO Joe Ferrara said in a statement that the company's mission to educate and empower end-users will progress with the acquisiton.

“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,” he said.

In September, the company leased the 23,850-square-foot second floor of the Crane Building in the Strip District.

Read the article in Pittsburgh Business Times