Illusive Acquisition: Key Details, Impact, and What Comes Next

Proofpoint has successfully acquired Illusive, a leader in Identity Threat Detection and Response (ITDR). This strategic move aims to bolster Proofpoint's threat and information protection platforms, addressing the growing threat of identity-based cyberattacks. By integrating Illusive's technology, Proofpoint enhances its ability to protect against critical threats like ransomware and data breaches, setting a new standard in cybersecurity.

What Is Illusive?

Founded in 2014, Illusive specializes in identity threat detection and response. Its core products include agentless identity threat detection and deception technology, which uniquely positions it in the market. Illusive's solutions focus on preventing, detecting, and remediating identity vulnerabilities and threats, leveraging a human-centric approach. This innovative technology allows organizations to activate deception to stop threat actors in their tracks, providing a comprehensive defense against identity-based cyberattacks.

Who Acquired Illusive?

Proofpoint is a leading provider of cybersecurity solutions, focusing on protecting organizations' greatest assets and biggest risks: their people. The company offers a range of key products, including Threat Protection, Data Protection, and Human Risk Mitigation services. Recognized as an industry leader, Proofpoint serves half a million customers, including 85 of the Fortune 100. Its human-centric cybersecurity platform is noted for its comprehensive, adaptive, and effective approach to protecting organizations.

When Was Illusive Acquired?

Proofpoint acquired Illusive on December 28, 2022. This acquisition comes at a time when the cybersecurity industry is grappling with a surge in identity-based cyberattacks. By integrating Illusive's advanced Identity Threat Detection and Response (ITDR) technology, Proofpoint aims to enhance its threat and information protection platforms. This strategic move is designed to provide comprehensive security solutions, addressing critical threats like ransomware and data breaches, and offering robust protection across the entire attack chain.

Why Was Illusive Acquired?

• Market Expansion: The acquisition of Illusive allows Proofpoint to expand its market presence by integrating Illusive’s trusted solutions, which are already used by leading multinational corporations. This move helps Proofpoint to extend its protection capabilities across the entire attack chain, thereby appealing to a broader customer base.
• Technology Integration: Illusive specializes in Identity Threat Detection and Response (ITDR). By acquiring Illusive, Proofpoint integrates this advanced technology into its existing threat and information protection platforms. This integration aims to provide a unified solution that enhances protection against critical threats like ransomware and data breaches.
• Competitive Advantage: The acquisition strengthens Proofpoint’s competitive position by adding Illusive’s specialized ITDR capabilities to its portfolio. This allows Proofpoint to offer a more comprehensive security solution that addresses a wider range of threats, thereby differentiating itself from competitors. The trust and reliability associated with Illusive’s solutions, which protect some of the world’s best-known brands, further enhance Proofpoint’s market credibility.

Acquisition Terms

• Acquisition Price: The exact financial details were not disclosed, but the deal value is estimated at $100 million to $150 million.
• Payment Method: The payment method was not specified.
• Key Conditions or Agreements:
  • The acquisition is expected to close by January 2023, subject to customary closing conditions and regulatory approvals.
  • Illusive Networks sought a new partner to support multiple initiatives designed to accelerate growth, including developing innovative technological solutions and expanding market penetration.

Impact on Illusive

The acquisition of Illusive by Proofpoint has led to significant operational changes, primarily the integration of Illusive's technology into Proofpoint's existing threat and information protection platforms. This integration has resulted in the rebranding of Illusive's identity threat detection and response solutions as Proofpoint Identity Threat Defense. While specific changes to management were not detailed, the continued involvement of Illusive's co-founder and CEO, Ofer Israeli, suggests a seamless transition. The operational shift aims to enhance Proofpoint's capabilities in proactive identity risk discovery and remediation, providing a more comprehensive defense against identity-based cyber threats.

In terms of product offerings, the acquisition has expanded Proofpoint's suite to include Illusive's advanced deception technology, now branded as Proofpoint Identity Threat Defense. This addition complements Proofpoint's existing cybersecurity products, offering enhanced protection against identity vulnerabilities and lateral movements by threat actors. Employee reactions have not been explicitly documented, but the positive statements from key executives indicate a welcoming attitude towards the merger. Customers, particularly those already using Illusive's solutions, are likely to appreciate the enhanced security measures and the unified approach to threat protection.

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