As Proofpoint, a privately held cybersecurity company in pre-IPO financing options as it readies for back-to-market public markets in 2026, disclosed its Chief Executive Officer, Sumit Dhawan, revealed in an interview with CNBC, Dhawan took over in November 2023 after the private equity firm Thoma Bravo bought out the company. The firm reportedly considered external investments and possibly acquiring smaller cybersecurity firms with mergers and acquisitions.
“We are looking at exploring public markets in the next 12 to 18 months,” Dhawan noted, adding that timing depends on more general market conditions and the outcome of the 2024 U.S. presidential election.
Proofpoint, however, since the buyout in 2021, has concentrated on strategic growth through consolidation in the industry. Dhawan pointed out how crowded the cybersecurity industry is. At least 2,000 venture-backed firms operating at a loss can attest to this. He stated that consolidation is a must and to the point to say, “There’s no way any market can have that many players.”
While he admitted that there is a prevailing bid-ask spread in market valuations, Dhawan is upbeat that the company would find its profitable acquisition targets which would resonate with its strategic objectives, most importantly, geographic expansion. He mentioned some of the strong growth prospects are in non-English-speaking areas, such as Japan and South Korea, and the Middle East, where cyber breaches are accelerating at a dramatic pace, motivated by the functionalities of generative AI.
It is a Silicon Valley-based company established in 2002 and specialized in developing technologies that protect organizations against phishing, multi-platform cyber threats, including email and social media. Competition Proofpoint faces intense competition in the markets from Palo Alto Networks, CrowdStrike, and Fortinet, which is more than eager to re-enter public markets following getting delisted after the Thoma Bravo acquisition.
We are a different from typical companies going to IPO,” Dhawan said while citing the company’s already established presence and its strategic vision for consolidation. Indeed, entering public markets again is part of the trend by Thoma Bravo acquisitions which include Dynatrace which returned successfully from private equity buyout to public tradin
