Varonis Systems' Data Security, Governance Focus Supports Takeout Appeal, RBC Says

12:26 PM EDT, 09/03/2026 (MT Newswires) -- Varonis Systems (VRNS) could be an "attractive acquisition target" given its focus on data security and governance and its valuation relative to security peers, RBC Capital Markets said in a report emailed Thursday. RBC said a sale to a private equity buyer with a strategic asset "could make sense," though the firm has "no knowledge of any potential transaction." The comments followed an unconfirmed Bloomberg report that Thoma Bravo-backed Proofpoint could be in talks to acquire Varonis. Varonis shares trade at about 6.5 times estimated 2027 enterprise value-to-sales, compared with about 9.9 times for security peers, the firm noted. Historically, software private equity deals have occurred at an average forward enterprise value-to-sales multiple of roughly 6 times, according to the report. Varonis' focus on "data security and governance" has become more relevant in the generative AI world and the company is in a "good position" to capture a meaningful share of a "large and growing market," the report said. Still, "competition is intensifying," and data security and governance capabilities could increasingly be consolidated into broader platforms, creating a potential window for Varonis to pursue a sale before competitive pressure increases further, the report said. RBC kept its outperform rating on Varonis Systems, with a price target of $52. Price: 46.42, Change: -0.34, Percent Change: -0.73