Data security firm Cohesity will acquire Veritas’ data protection section. The combined business is anticipated to have a market value of around $7 billion. When the deal concludes, which the companies expect to accomplish by the end of 2024, Sanjay Poonen, the CEO of Cohesity and a former senior executive at VMware, will oversee the combined business.
The combination is expected to establish a massive player in the rapidly expanding data security and management technology industry.
This action is being taken at a crucial juncture, when businesses everywhere are dealing with the twin issues of growing ransomware threats and the urgent need to use generative AI for data-driven insights. Through the combination of Cohesity and Veritas’ technical know-how and product lines, the newly established business will provide a comprehensive suite of multicloud data security solutions. This combination would give companies the tools they need to safeguard their data while opening up new efficiencies and innovative opportunities.
The synergy between Cohesity's scalable architecture, renowned for supporting modern workloads and incorporating robust AI and security features, and Veritas' extensive workload support and significant global footprint, particularly among the Global 500 and large public sector agencies, will undoubtedly forge a new leader in the domain. This alliance promises to bring together hundreds of exabytes of protected data, a global market presence, and a vast network of partners spanning cloud service providers, security firms, VARs, system integrators, and hardware OEMs.
A total addressable market (TAM) of over $30 billion is about to be addressed by this combination, with a particular emphasis on the data duplication and protection software industry, which IDC projects would reach $12.2 billion by 2024.
Combined Sales of over $1.6 billion
For the fiscal year ending in July 2023, the merged firm reported sales of over $1.6 billion, an annual recurring revenue (ARR) of $1.3 billion, and an adjusted cash EBITDA margin of 27 percent.
Softbank Vision Fund, Sequoia Capital, Wing Venture Capital, Premji Invest, and other notable investors support the combined company. Following the acquisition, Cohesity's shareholders, headed by majority owner Carlyle, will acquire shares in Veritas, strengthening the latter's position in the market and stability of its finances.
In summary, the Cohesity and Veritas data protection company combination is poised to provide innovative solutions that tackle the intricate issues of the current digital environment by merging their complementary skills. This would provide enterprises throughout the globe the resilience and knowledge they need to prosper in the multicloud age.
“We are deeply committed to our mission to protect the world’s data. This deal will combine Cohesity’s speed and innovation with Veritas’ global presence and installed base,” said Sanjay Poonen, President and CEO of Cohesity. “We will lead the next era of AI-powered data security and management by bringing together the best of both product portfolios – Cohesity’s scale-out architecture ideally suited for modern workloads and strong Generative AI and security capabilities and Veritas’ broad workload support and significant global footprint, particularly in the Global 500 and large public sector agencies. This combination will be a win-win for our collective 10,000 customers and 3,000 partners, and I can’t wait to work with the Veritas team to bring our vision to life.”
Greg Hughes, CEO of Veritas, stated, “Veritas and Cohesity share a common vision of empowering businesses to protect their critical data assets in the face of evolving cyber threats and complex hybrid cloud environments. Bringing Veritas’ differentiated cloud-native architecture to Cohesity’s strong innovation engine will ideally position us to offer our customers transformative solutions against cyber attacks while delivering the flexibility and scalability required to thrive in the multicloud era.”
“Both companies have high Net Promoter Scores and share a steadfast, long-term commitment to customers. Existing products will continue to be supported for many years while leveraging joint best-of-breed technologies to provide the most innovative roadmap for a future that delights customers,” added Mr. Poonen. “We are deeply committed to both Cohesity and Veritas customers, partners, and employees as we accelerate customer-driven innovation as one company.”
