Proofpoint Secures $1.25B Financing to Fund Varonis Buyout
VRNS has more than doubled off its 52-week low of $19.7 on elevated volume (16× avg).
Summary
Proofpoint has locked in $1.25 billion in financing for its all-cash acquisition of Varonis, per Bloomberg. This follows the definitive agreement announced October 15th: Proofpoint, owned by Thoma Bravo, will pay $49.75 per share in cash in a deal valued at roughly $6.3 billion, a 52% premium to Varonis' pre-rumor price. Secured financing removes the last major execution risk on the buy side and makes the deal's close far more likely. Varonis shares should continue to trade near the $49.75 offer, with the spread now reflecting only time-to-close and regulatory risk.
At the time of this announcement, VRNS was trading at $48.65 on NASDAQ in the Technology sector, with a market capitalization of approximately $5.6B. The 52-week trading range was $19.70 to $63.80. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.