Varonis Systems (VRNS) investor relations material

Executive summary

• Merger agreement signed October 15, 2026; Proofpoint will acquire the target for $49.75 cash per share, with closing expected in H1 2027 if conditions are met.

• Estimated funds required total $6.315B, including debt repayment and transaction costs; committed financing includes $3.861B equity and up to $1.25B debt, with no financing condition.

• The board unanimously found the deal advisable and fair, following the Transaction Committee’s unanimous recommendation; Goldman Sachs opined that the cash price was fair financially.

Voting matters and shareholder proposals

• Shareholders will vote on merger adoption, advisory approval of merger-related executive compensation, and possible meeting adjournment; the board recommends FOR all three.

• Merger approval requires a majority of outstanding voting power; abstentions and failure to vote have the same effect as votes AGAINST the merger proposal.

• The compensation vote is non-binding and not a closing condition; approval requires a majority of voting power present or represented at the meeting.

Board of directors and corporate governance

• A four-member Transaction Committee was formed in April 2026 to evaluate strategic alternatives; the board reserved the final decision on any sale.

• The process included outreach to nine strategic parties, nine inbound inquiries, management presentations to eight counterparties, two initial indications, and one final indication from Proofpoint/Thoma Bravo.

• The board cited a 52% premium to the June 22, 2026 closing price and ~17.5% to the September 1 price, plus immediate liquidity and reduced standalone execution risk.

• The board considered director and executive interests in the transaction, including equity treatment, severance, post-closing arrangements, and six years of indemnification and D&O coverage.