In a strategic move to bolster its email security capabilities, Proofpoint, a leading Silicon Valley-based email security vendor, has announced its intention to acquire Tessian, a cloud email security provider with a strong foundation in AI technology.
Furthermore, this acquisition is aimed at addressing common forms of data loss, such as misdirected emails and misattached files, which remain significant causes of compliance violations and accidental data loss. The integration of Tessian’s advanced AI with Proofpoint’s robust data and detection stack is expected to offer customers a world-class defense and instant protection, according to Proofpoint’s Executive Vice President and General Manager, Darren Lee.
Tessian, founded in 2013, has raised significant funding, with its most recent Series C round led by March Capital, and it has been praised for its ability to detect anomalies in user behavior and provide real-time security coaching. However, it has also faced criticism for certain generic aspects of its user risk scoring and the absence of features like malware sandboxing.
While the exact terms of the acquisition were not disclosed, IT-Harvest estimates Tessian’s worth to be between $307 million and $415 million. Tessian’s CEO, Tim Sadler, emphasized the shared vision to enhance email security and reduce the risk of data breaches through this collaboration with Proofpoint.
Tessian’s offerings, including Guardian, Enforcer, and Defender, are designed to prevent misdirected emails, data exfiltration, and email attacks while providing contextual warning banners. This acquisition comes as Proofpoint’s third strategic move following its acquisition by Thoma Bravo in 2021. Tessian’s innovative use of AI combined with Proofpoint’s expertise is expected to revolutionize email security, making it smarter, more effective, and less intrusive to end-users. The acquisition was announced shortly after Proofpoint’s CEO stepped down, and it is expected to close in late 2023 or early 2024, further solidifying Proofpoint’s position in the enterprise cybersecurity landscape.