Varonis self-hosted ends Dec. 31, months before Proofpoint takes over

Proofpoint agreed on October 15 to buy Varonis for $49.75 a share in cash, a deal valued at about $6.3 billion. Proofpoint is owned by private equity firm Thoma Bravo, which took it private in 2021 for $12.3 billion, and the companies expect the deal to be done in the first half of 2027 once Varonis shareholders and regulators sign off. Until then the two say they will run as separate companies.

For one group of Varonis customers the timing is awkward. Varonis is ending its self-hosted product, the version companies install on their own servers, on December 31, 2026. That is 73 days from today, and up to 181 days before the latest date Proofpoint expects to own the company. Anyone still on self-hosted has to move to Varonis SaaS or replace it before the cutoff, and a SaaS move means agreeing terms with a company that will soon belong to a new owner. Proofpoint's announcement says nothing about contracts, pricing, support, the product roadmap or the Varonis brand.

What Varonis has said about the cutoff

Chief executive Yaki Faitelson announced the end of life on the company's October 2025 earnings call. Chief financial officer Guy Melamed said the company did not want to keep two code bases going, and that ending self-hosted brought "significant financial benefits." In a blog post, Faitelson says that all Varonis needs is access to a customer's self-hosted environment, that a dedicated team handles the move, and that "There will be no gap in protection." It says the SaaS product covers data in SaaS apps, cloud infrastructure and on-premises servers. The post gives no migration price, and Varonis has not published what support, if any, self-hosted customers get after December 31.

Most of the business has already moved. SaaS made up 76% of total annual recurring revenue by the October 2025 call. In its second-quarter results on July 28, Varonis reported SaaS annual recurring revenue of $726.0 million and, on its earnings call that day, $598.1 million excluding conversions, so $127.9 million came from customers who switched from self-hosted. Term license subscription revenue fell to $4.2 million from $32.4 million a year earlier, a drop of 87%, which Varonis put down mainly to customers converting to SaaS. It does not say how many customers are still on the old product.

What changes after the deal closes

Once it owns Varonis, Proofpoint says, it will "move quickly" to integrate the two product sets and line up their sales efforts. CRN lists where the two overlap: insider risk, data loss prevention, AI governance, data access governance and data security posture management. Proofpoint already owns a posture management product from its 2024 purchase of Normalyze, Futurum notes, and it closed its $1.8 billion Hornetsecurity deal in December 2025.

For many buyers the deal folds two vendors into one. In Futurum's October 2026 spending-intentions survey, 53% of the organizations that cite Varonis also cite Proofpoint. Fernando Montenegro, vice president and practice lead for cybersecurity and resilience at Futurum Group, calls Varonis "the scale step" for Proofpoint and says the challenge is keeping "Varonis's team and roadmap moving" during the long wait for the deal to close. Customers looking for answers on the next earnings call will not get one: Varonis reports third-quarter results on November 3 with no conference call.