Business & Markets

Proofpoint, which is owned by private equity firm Thoma Bravo, agreed to buy data and AI security company Varonis in an all-cash transaction valued at roughly $6.3 billion. Varonis shareholders will receive $49.75 per share. That is 52% above the $32.71 close on June 22, the last full trading day before sale rumors surfaced. SecurityWeek called it the largest cybersecurity acquisition announced so far in 2026. Thoma Bravo is providing committed equity and has lined up debt financing. Ontario Teachers' Pension Plan will also invest in Proofpoint as part of the deal. Varonis' board approved the deal unanimously, but shareholder and regulatory approvals are still needed. The companies expect to close in the first half of 2027, and Varonis will then leave the public markets. The two firms say they will combine controls over what data AI agents can reach inside corporate systems.

WASHINGTON — The National Federation of Independent Business said its Small Business Optimism Index fell 0.8 points in September to 97.9, a tenth of a point below its 52-year average of 98.0. Its Uncertainty Index rose a point to 90, well above the historical average of 68. Labor quality or availability was owners' top problem for a third month, cited by 26%. Inflation was second at 20%, up 4 points. Only 7% of owners said it was a good time to expand, down 5 points. Borrowing costs rose: a net 8% of owners reported paying a higher rate on their latest loan, the most since June 2025, and the average short-term rate climbed to 8.2% from 7.5% in August. CFO Dive noted that war-driven inflation and the immigration crackdown have strained small-business hiring and performance. NFIB's next report is due November 10.

DULUTH, Ga. — Fox Factory Holding, which makes suspension and performance vehicle parts, said Friday that CEO Mike Dennison is stepping down as chief executive and as a director, effective immediately. Dennison had led the company since 2019. Independent director Doug Grimm is interim CEO, and a permanent search is underway. The company also pre-announced third-quarter net sales of $336 million to $340 million, against guidance of $355 million to $380 million. It cited weak results at Marucci Sports, which it sold on September 25. It also cited a supply disruption in its Powered Vehicles Group, problems in its upfit business and softer bicycle sales. Fox now expects 2026 net sales of $1.35 billion to $1.38 billion, down from $1.42 billion to $1.47 billion. It expects adjusted EBITDA of $140 million to $150 million, excluding about $14 million of tariff refunds, versus prior guidance of $176 million to $196 million. Full results are due November 5.

Google's September 2026 spam update began on September 24 and finished on October 8 at 4:37 a.m. Eastern, Search Engine Roundtable reported. Google had warned the rollout could take up to two weeks. That was far longer than the earlier spam updates this year, which took about two days each. The publication's executive editor, Barry Schwartz, wrote in his October 16 recap that he was seeing signs of an unconfirmed Google ranking update. Google had not confirmed any new update in that recap. Practitioners often see volatility outside named rollouts, and agencies should avoid attributing a traffic swing to an update Google has not acknowledged. Google's Search Status Dashboard is the official place to check for confirmed rollouts.

WASHINGTON — The Justice Department and Google jointly asked the D.C. Circuit on October 5 to prioritize their cross-appeals in the search monopolization case, Law360 reported. They proposed oral argument as early as December 9. Judge Amit Mehta's final judgment, entered in December 2025, restricts how Google distributes its services. It also requires Google to share certain search data with, and offer syndication services to, some competitors, according to Alphabet's latest quarterly filing. Google appealed in January 2026, and the DOJ and states cross-appealed in February. The district court denied Google's request to pause some remedies as premature, so the judgment remains in effect while the appeals proceed. Reporting from July said the government wants the appeals court to also bar Google's default-placement payments to distributors such as Apple. The court has not yet ruled on the scheduling request.

BANGKOK — Speaking Friday at the IMF and World Bank annual meetings, Fed Chair Kevin Warsh declined to say what the Fed will do at its Oct. 27-28 meeting. He described a "synchronous tightening" by central banks, with "no free riders." Euronews reported the wave includes two European Central Bank hikes, driven by energy prices that have jumped since the US-Israel war with Iran began in late February, and by the AI investment boom. The Fed raised its target range to 3.75% to 4% in September, its first hike since 2023. CME FedWatch showed a 72.3% chance of a hold this month. Goldman Sachs economists expect a pause in October and a final hike in December, and Euronews put market odds of a December hike near 90%. Warsh also called the AI path "very bumpy."

NEW YORK — Third-quarter results from the largest US banks were uneven. CNBC reported that JPMorgan Chase missed analyst estimates on earnings and revenue but raised its 2026 net interest income guidance. Its shares closed 0.9% lower on Oct. 13. Wells Fargo fell 3% on mixed numbers, and Goldman Sachs slipped 0.2% despite beating on revenue. Goldman, Morgan Stanley and Citigroup later beat earnings and revenue forecasts. Saxo Markets said the KBW Bank Index had fallen about 13% since August as rising Treasury yields raised worries about borrowing costs, loan demand and credit losses. Credit card, commercial real estate and loan-loss provisions are the main watch points. Fifth Third reports today, Capital One on Tuesday, and American Express on Friday.

WASHINGTON — The latest official labor data, for September, show a low-hire economy. The Bureau of Labor Statistics reported payrolls up 29,000, well below the 84,000 forecast, with July and August revised down by 60,000 combined. Unemployment rose to 4.2%, largely because more people entered the labor force. Average hourly earnings rose 3.0% over 12 months, the slowest since May 2021. Euronews reported September consumer prices up 3.7% from a year earlier, so real wages are falling. Financial activities employment is down 129,000 from its May 2025 peak. Vanguard's Adam Schickling described a "low-hire, low-fire" market. Weekly jobless claims are forecast near 200,000 on Thursday. With the Fed in blackout, that reading is the next labor-market clue before its Oct. 27-28 meeting.

WASHINGTON — President Trump signed an executive order late Friday, October 16, using the national-interest waiver in the Graham Act. The law, signed September 18, required tariffs of up to 500% on Russian goods. It also required tariffs of up to 100% on top buyers of Russian oil and gas, including China and India. The waiver came two days before the implementation deadline. Existing sanctions under earlier orders stay in place. It follows an October 9 deal in which Putin agreed to supply more than 4 million tons of diesel, and a Treasury license easing sanctions on Russian diesel through April 2027. Ukrainian President Zelenskyy called the waiver wrong. Kremlin envoy Kirill Dmitriev called it historic. Analysts cited by CNBC and the Council on Foreign Relations say the diesel volumes are small against a global shortfall that Kpler puts near 1 million barrels a day. Bipartisan senators and House members have asked the administration to reverse course.

AUSTIN — The Public Utility Commission of Texas voted October 15 to extend its time to consider rehearing motions on Oncor's Dinosaur-to-Drill Hole 765-kilovolt line, according to Texas Scorecard. That outlet is an advocacy-leaning Texas political site. The extension runs to 100 days after the commission's August 28 order. By the commission's statutory calendar that is December 6, rather than the October 22 cutoff that would otherwise have applied. The line would run roughly 390 miles from near Glen Rose to the Culberson-Reeves county line. It is among the first projects under the Permian Basin Reliability Plan. The Texas Tribune reported the commission approved two Oncor lines unanimously in August, over landowner objections. Pipeline operators have asked for safeguards against stray-current effects. Oncor says the existing order is adequate. A groundwater district has also sought protections for an aquifer. Attorneys cited by Texas Scorecard advise against land acquisition until the motions are resolved.