Proofpoint has entered into a definitive agreement to acquire Israeli startup Meta Networks for approximately $120M in cash and stock.
Meta Networks, founded in 2016 by Alon Horowitz (VP R&D), Etay Bogner (CEO) and Shmulik Ladkani (CTO), is based in Tel Aviv and focuses on zero trust network access, describing itself as “reinventing the secure enterprise network for the cloud age”.
The company is funded by BRM Capital and Vertex Ventures, which had invested a total of $10 million in a seed funding round.
Together with Proofpoint, we will continue to realize a security vision that adapts to the way both threats and infrastructure are moving: to the cloud.Etay Bogner, Co-founder and CEO, Meta Networks
“Protecting people and resources beyond the traditional perimeter is perhaps the most critical security requirement in the cloud era,” said Bogner.
“Together with Proofpoint, we will continue to realize a security vision that adapts to the way both threats and infrastructure are moving: to the cloud. Proofpoint is at the forefront of this transformation and we are very excited to become a part of an incredible team.”
Proofpoint intends to integrate Meta Networks’ zero trust network access offering with its existing cloud access security broker and web isolation product lines.
Meta Networks employees will also be joining Proofpoint’s Israel-based team, which will add around 20 technical contributors to the company’s existing presence in the region.
“By combining Meta Networks’ innovative zero trust network access technology with our people-centric security capabilities, Proofpoint will make it far simpler for enterprises to precisely control employee and contractor access to on-premises, cloud, and consumer applications,” said Proofpoint CEO Gary Steele. “We are thrilled to welcome Meta Networks employees to the Proofpoint team.”
Proofpoint’s made a number of acquisitions over the past few years, with strategy seeming to shift towards higher priced transactions – as well as the $120 million price tag for Meta Networks, last year saw the acquisition of Wombat Security Technologies for $225 million, preceded a few months earlier by the acquisition of Cloudmark for $110 million.
The transaction is expected to close in Q2 2019, with the purchase price consisting of around $111 million in cash and $9 million in Proofpoint common stock and options.