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Data security company Cohesity is expanding its partnership with IBM, receiving the final part of a Series F funding round of $150 million (more than 140 million euros) from that company. IBM did not disclose the amount it is investing in Cohesity.

Cohesity hopes the investment will address customers’ growing need for data security and resilience in hybrid cloud environments. The announcement is the capstone for Cohesity’s Series F funding round. Just last month, Nvidia joined the company as an investor as well.

The expanded partnership between Cohesity and IBM focuses on further addressing data breaches. The cost to companies of such breaches averages nearly $4.5 million (4.2 million euros) per case, IBM-sponsored research concluded. IBM will offer Cohesity’s tools through its own cyber defense platform IBM Storage Defender. This cooperation should create a robust end-to-end solution that makes it easier for customers to protect, monitor, manage, and if necessary, recover their data.

IBM has been working with Cohesity since March last year. In the process, the Cohesity DataProtect and IBM Storage Defender products were integrated. The ‘deepening’ of the cooperation means a more significant integration of the two parties’ systems.

Hundreds of millions raised

Cohesity raised $660 million in previous rounds of investment, including $250 million in the previous round alone that started in 2020. The most recent capital injection came in March from Nvidia as part of the just concluded Round F. Cohesity has now raised $805 million (752 million euros).

The company’s acquisition of Veritas’ data security arm is still quite recent. This instantly created one of the largest players in the highly fragmented world of backup, disaster recovery, data management and cyber resilience.

Value estimated at $7 billion

The board of directors of both Cohesity and Veritas unanimously approved the latest deal with IBM. The deal is expected to be finalized by the end of 2024. The combined company is valued at about $7 billion.

Cohesity’s major investors, including Softbank Vision Fund, Sequoia Capital, Wing Venture Capital, and Premji Invest, will continue to support the combined entity. Following the completion of the transaction, Existing Veritas shareholders, including majority owner Carlyle, will become co-shareholders in Cohesity. Cohesity may be preparing for an IPO. Their rival Rubrik preceded them.

Read also: Cohesity buys Veritas unit for nearly 3 billion dollars