Proofpoint, Inc. Acquires Sendmail, Inc.
Press Release, News
SUNNYVALE, CA(Marketwired - Oct 1, 2013) - Proofpoint, Inc., (
"The foundation of the Proofpoint Enterprise Protection™ solution is built on the Sendmail Messaging Transfer Agent (MTA)," said Proofpoint CEO Gary Steele. "Over the many years of its operation, Sendmail has established itself as a leading provider of critical messaging infrastructure throughout the world, both for cloud deployments as well as legacy on-premise solutions. Acquiring Sendmail gives Proofpoint ownership of this definitive industry-standard technology, enabling us to further optimize the solution to meet the evolving demands of public and private cloud architectures and their associated security requirements. We are thrilled to welcome the extraordinary team that built this technology as the newest members of Proofpoint's exceptional team of technical talent, and we look forward to working with Sendmail's enterprise customers to help them meet the challenges of the evolving security threat landscape through deployment of Proofpoint's Targeted Attack Protection™ and our other cloud-based security solutions."
The Sendmail MTA holds a distinguished place in the Internet's history as the first broadly distributed MTA platform supporting simple mail transfer protocol (SMTP). To this day, the Sendmail MTA as a commercial product and in its open source version is widely used for intranet and Internet messaging. Through this acquisition, Proofpoint plans to further enhance the Sentrion™ MTA platform while also continuing to maintain the open source distribution.
Sendmail brings a global community of open source users and a compelling set of enterprise customers, but little in the way of near-term recurring revenue due to their legacy business model built around the sale of appliances and perpetual licenses. Proofpoint believes that there is a compelling opportunity to better service these customers by continuing to support the open source distribution while moving to a subscription-based model for the proprietary Sentrion version of the platform. We expect this new subscription-based approach to further extend the ongoing proliferation of the Sendmail solution to both new and existing customers while also creating an opportunity to sell Proofpoint's world-class Security, Archiving and Governance solutions to Sendmail's installed base of enterprise customers.
For the fourth quarter of 2013, Proofpoint expects Sendmail to have an immaterial impact on revenue while widening the company's non-GAAP net loss by approximately $2 million or $0.06 per share, as the company takes on the costs associated with this new team and begins to build a recurring revenue stream.