VRNS Reportedly Exploring a Potential Sale

Research evidence excerpt

VRNS Reportedly Exploring a Potential Sale

Security Software

VARONIS SYSTEMS, INC. (VRNS) June 23, 2026

VRNS Reportedly Exploring a Potential Sale Rating:

OutperformWhat Happened? Bloomberg reported Tuesday that VRNS is exploring strategic Price:

options including a potential sale after receiving takeover interest, and is working with $32.71

advisers as it fields preliminary interest from private equity firms including Blackstone, Price Target:

$35Thoma Bravo, and Vista Equity Partners. Shares rose ~11% intraday. The article also

% Upside:

highlighted that deliberations are in early stages and that there is no certainty that 7.0%

the company will decide to pursue a sale.

Source: FactSet, Wolfe Research

Our Take. While the article highlights that it is still very early, we think the data Priced as of 06/22/26

security space is very hot right now given the enterprise push to deploy AI, which

Joshua Tilton, CFA

coupled with the growth profile of the SaaS business (ARR +69% in the most recent JTilton@wolferesearch.com

quarter) makes now a pretty solid time to sell. Following the post-news pop, shares (415) 878-6430

are now trading at ~4.5x FY27 consensus sales. We believe that if a deal were to View Joshua’s Research

View VRNS Model

ultimately get done, the implied multiple would be closer to 6x FY27 sales, which is View Comp Table

relatively in-line with the Tier-2 recent SaaS M&A EV/FY+2 Sales average of 6.3x and

a premium to our All Security comp group which trades at a median multiple of ~5x. Alex Zukin azukin@wolferesearch.com

We believe the premium to All-Security is justified given VRNS' growth profile when (415) 878-6420

compared to the broader group (consensus VRNS FY+2 growth: 18% / Wolfe Upside: View Alex’s Research

23% vs. All Security comp group median: 10%).