Cohesity to Acquire Veritas’ Data Protection Business, Creating $7 Billion Organization

Cohesity, a leading data security vendor, has announced a major agreement to acquire Veritas’ data protection business, creating a combined organization valued at a whopping $7 billion. Sanjay Poonen, Cohesity’s CEO and a former VMware executive, will lead the newly formed organization following the completion of the merger, expected by the end of 2024.

The merger aims to establish a powerhouse in the rapidly growing market for data security and management technologies. With a focus on AI-powered data security and management, the combined company will leverage the strengths of both Cohesity’s scale-out architecture and Veritas’ broad workload support to deliver innovative solutions to their collective 10,000 customers and 3,000 partners.

The merger will result in a combined annual recurring revenue of $1.3 billion, solidifying the company’s position as a major player in the industry. Cohesity, founded in 2013, has transitioned its focus from storage and data management to data security technologies under Poonen’s leadership, catering to top-tier clients in various sectors.

The financing of the Veritas deal will involve a combination of equity and debt, with specific terms undisclosed. Investors supporting the combined organization include Softbank Vision Fund, Sequoia Capital, and Wing Venture Capital. Veritas’ remaining assets will be transitioned into a separate entity known as “DataCo,” comprising specific business units to enhance agility and adaptability.

Partners of Cohesity and Veritas, like Kapil Bansal of SHI, have expressed optimism about the merger, citing Cohesity’s channel-friendly approach as a positive sign for the future. The partnership is expected to bring new opportunities and benefits to all stakeholders involved, solidifying Cohesity’s position as a multibillion-dollar revenue company on the rise.