Proofpoint to acquire Hornetsecurity to expand global M365 security for MSPs and SMBs

Proofpoint has announced its plans to acquire Hornetsecurity Group, a pan-European provider of AI-powered Microsoft 365 security and data protection solutions.

The move brings together two leading providers focused on protecting businesses from human-centric cyber threats, particularly across small and medium-sized businesses (SMBs) and managed service providers (MSPs).

The acquisition aims to strengthen Proofpoint’s capabilities in delivering targeted security solutions to MSPs and SMBs worldwide. While the financial terms of the transaction have not been disclosed, Hornetsecurity contributes over $160m in annual recurring revenue and has been growing at over 20% year-on-year. The deal is expected to close in the second half of 2025, pending customary regulatory approvals.

Hornetsecurity provides cloud-based security and compliance services for M365 environments, with a focus on SMBs across Europe. The company works with over 12,000 MSPs and serves more than 125,000 end customers. Its flagship platform, 365 Total Protection, offers advanced email security, backup, security awareness, access control, and fraud protection through a unified, multi-tenant solution.

Proofpoint, trusted by 85% of Fortune 100 companies and over half of the Fortune 1000, delivers enterprise-grade cybersecurity that focuses on protecting individuals and the data they interact with. The company recently strengthened its partnership with Microsoft to deliver scalable, people-centric threat detection across digital channels.

By combining Hornetsecurity’s specialised MSP network and AI-driven security solutions with Proofpoint’s global infrastructure and threat intelligence, the companies intend to offer a new benchmark for human-centric security. Hornetsecurity will serve as the primary hub for MSP and SMB customers within the group, helping streamline service delivery and accelerate product innovation.

Hornetsecurity CEO Daniel Hofmann will continue to lead the business following the acquisition. The existing management team will remain in place to further drive innovation and maintain the company’s strategic direction. The integration is expected to enhance both firms’ detection and response capabilities through combined AI models and shared intelligence.

Kovr.ai, a newly launched RegTech company focused on AI-native cyber compliance automation, recently emerged from stealth to announce $3.6m in seed funding.

The investment round was co-led by IronGate and Xfund, with additional participation from Hack Factory, OODA Ventures, and McLean Capital. The capital will support the company’s efforts to scale its go-to-market initiatives, expand its AI engineering team, and accelerate product development.

Founded by former AWS, Gartner, and PwC executives Andrew Black and Sri Iyer, Kovr.ai offers a platform tailored for highly regulated industries seeking to automate complex compliance tasks. The technology addresses frameworks such as FedRAMP, CMMC, and NIST, which are typically time-consuming and resource-intensive.

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