Data security company Cohesity is set to acquire the data protection business of Veritas in a stock and debt transaction, culminating in the formation of a unified entity by year-end, as announced on Thursday. The merger, valued at approximately $7 billion, will retain Cohesity CEO Sanjay Poonen in his current role and necessitates regulatory approval before finalization. The combined company is poised to offer an extensive data protection solution, boasting functionalities ranging from backup across third-party storage to cloud security in platforms like AWS and Azure.
This strategic move is anticipated to yield significant financial benefits, with the combined entity projecting annual recurring revenue of $1.3 billion and total revenue of $1.6 billion for the fiscal year starting July 2023. Poonen highlighted the synergies between the two companies’ product portfolios, emphasizing Cohesity’s scalable architecture and advanced AI and security capabilities, complemented by Veritas’ broad workload support and global presence. Despite competition from rivals like Rubrik, Cohesity aims to consolidate its position in the market and plans to continue investing in Veritas’ flagship backup products such as NetBackup and Alta.
The acquisition marks a pivotal moment for Cohesity, which under Poonen’s leadership has pivoted towards data security, particularly with offerings like FortKnox, a cloud-based data vault. With unanimous approval from Cohesity’s board and backing from the Carlyle Group, the majority owner of Veritas, the deal signals confidence in Cohesity’s growth trajectory and its ability to deliver AI-driven insights and enhanced data resilience to customers.
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