Proofpoint to Acquire Meta Networks for $120 Million

Nasdaq-listed cybersecurity company Proofpoint Inc. has announced on Monday an agreement to acquire cybersecurity startup Meta Networks Ltd. for $111 million in cash and $9 million in Proofpoint stock and options. The transaction is expected to close in the next two months, subject to customary closing conditions.

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Founded in 2016 and headquartered in Tel Aviv, Meta Networks develops cloud-native security tools for enterprise wide area networks (WAN). Meta Networks' system isolates each user’s private data from the internet and from the organizational network in order to reduce the chances of unauthorized access, a cyber attack, or a leak. The company raised $10 million to date from Vertex Ventures Israel and BRM Group.

Proofpoint stated it intends to integrate Meta Networks' technology within its products line to offer customers more comprehensive cloud access and security platform. Following the acquisition, Meta Networks' employees will join Proofpoint's Israeli team.

“As cyber attacks primarily target people, and organizations continue to move their infrastructure to the cloud, the compromise of a single user all too often leads to a full enterprise breach,” Proofpoint CEO Gary Steele said in a statement, adding that the integration of Meta Networks' technology “will make it far simpler for enterprises to precisely control employee and contractor access to on-premises, cloud, and consumer applications."