AAA Proofpoint checks off $110m Cloudmark acquisition

Proofpoint checks off $110m Cloudmark acquisition

Enterprise security software provider Proofpoint has agreed to acquire US-based cybersecurity technology developer Cloudmark for $110m, enabling communications technology provider Nokia and trading group Sumitomo to exit.

The all-cash deal is expected to close in the fourth quarter of 2017, pending regulatory approval. Upon completion, Proofpoint will integrate Cloudmark’s threat telemetry and intelligence data into its Nexus platform, which powers its product portfolio.

Founded in 2001, Cloudmark provides messaging security software to protect communications service provider networks and their subscribers against a range of threats.

Nokia participated in a $23m round for Cloudmark in 2010 through its corporate venturing arm, Nokia Growth Partners. The round was led by venture capital firm Summit Partners with contributions from Ignition Partners and Industry Ventures.

Sumitomo invested in Cloudmark through its Presidio Ventures subsidiary, which contributed to an $11m round in 2004 alongside FTVentures and Ignition Partners, the latter having led a $4.5m round for Cloudmark in 2003.

Gary Steele, CEO of Proofpoint, said: “We are excited to welcome Cloudmark’s internet service provider (ISP) and mobile carrier customers to Proofpoint.

“By combining the threat intelligence from Cloudmark with the Proofpoint Nexus platform, we can better protect all of our customers – both enterprises and ISPs – from today’s rapidly evolving threats.”

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