Cohesity has reached an agreement to acquire Veritas’ data protection business. The combined company will be valued at $7 billion, about 6.5 billion euros.
CEO Sanjay Poonen told Reuters, “You’ve got the fastest growth on our side and the best profitably on their side, combined together to be a profitable growth machine that’s innovating with AI.” The combined company should be able to expand further into international markets.
According to Bloomberg sources, Cohesity is paying $3 billion or more for the Veritas unit. The two companies currently have combined annual revenues of $1.6 billion.
Combination
Cohesity provides software that allows companies to protect and manage their data, particularly in response to the risks of cyber incidents. The company has been around for just over a decade and has secured clients such as Salesforce, Nasdaq and Broadcom. In 2021, Cohesity was still planning to go public, but due to macroeconomic circumstances, those plans were withdrawn. Meanwhile, investment firm SoftBank has a stake in Cohesity.
Veritas competed with Cohesity with its data protection business. However, the Veritas company has been around much longer than Cohesity. In 2016, private equity Carlyle Group took a majority stake in Veritas, which it acquired from Symantec. Carlyle is now transferring the stake and will join the board of directors of the newly merged company. Veritas CEO Greg Hughes will also join the board.
The remaining Veritas business around data compliance and backup services will be housed in a separate company. The deal should be completed by the end of this year, subject to regulatory approval.
Tip: Cohesity expands DMaaS offering with Disaster Recovery and more
19 hours ago
