Cohesity is now valued at $3.7 billion

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Cohesity has received offers from institutional investors who want to buy some of the equity the company’s employees hold. The data management provider will be valued at $3.7 billion, which is $1.2 billion more than what it was valued at last year.

The investors participating in the tender include Wing Venture Capital, Foundation Capital, Steadfast Capital Ventures, DFJ Growth, and more. They want to buy about $145 million worth of equity, according to transaction details released by Cohesity, whose founder and CEO, Mohit Aron, believes that the oversubscribed, non-dilutive tender offer is based on the increasing valuation, says a lot about the company’s performance and future.

What does Cohesity do?

The company sells software that helps organizations manage the data they keep in the cloud and on-premises. It is present in numerous parts of the data management market.

The company provides products that admins can use to back up business records and recover them if the primary copies are not available.

There are tools to optimize data storage costs by duplicating and then compressing the information. The core data protection offered by Cohesity is augmented by more specialized tools.

Moving to the public cloud

The company developed many things, including a machine learning system that detects when ransomware attempts to encrypt business records. Cohesity is following an IT industry trend where it is becoming increasingly focused on the public cloud.

In the months leading up to this valuation, the company introduced a managed cloud-based version of its DataProtect product. The company disclosed plans to bring a new software-as-a-service version of other products to the market.

Cohesity partnered with AWS to host its SaaS portfolio. AWS is not just a key partner but will also benefit from the valuation jump since it is invested in Cohesity.