What happened Shares of Proofpoint (NASDAQ: PFPT) surged 31% on Monday after the cybersecurity and compliance company announced that it reached a deal to be acquired by private equity firm Thoma Bravo. So what The all-cash deal values Proofpoint at roughly $12.3 billion. Proofpoint shareholders will receive $176 in cash for each share they own, a 34% premium to the stock's closing price on Friday. "Today's announcement is a testament to the strength of Proofpoint's people-centric approach to cybersecurity and compliance and underscores our important role preventing, defending, and responding to today's threats," Proofpoint CEO Gary Steele said in a press release. Proofpoint struck a deal to be taken private at a substantial premium to its recent market price. Image source: Getty Images. The agreement gives Proofpoint's board of directors the option to solicit competing bids during a 45-day "go-shop" period that ends on June 9. Still, the transaction is expected to close in the third quarter, subject to shareholder and regulatory approval. "We determined this premium, all-cash offer and partnership would create immediate and certain value for shareholders and help us achieve our operational and market ambitions more quickly for the benefit of our customers," Proofpoint director Dana Evan said. Now what With more people working from home and businesses shifting their operations to the cloud, demand for cybersecurity solutions has boomed during the coronavirus pandemic. Thoma Bravo has been ramping up its investments in the rapidly expanding industry, and it sees an intriguing opportunity ahead for Proofpoint. "As the sophistication of cyberattacks continues to increase, Proofpoint is delivering the most effective solutions to help organizations protect their data and people across digital platforms," Thoma Bravo partner Chip Virnig said. "We look forward to partnering with the talented Proofpoint team and leveraging Thoma Bravo's significant security and operational expertise to help accelerate the company's growth." 10 stocks we like better than ProofpointWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Proofpoint wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source