Cohesity and Veritas forge new path in data security and management with historic merger

In a landmark move for the data security and management industry, Cohesity, a frontrunner in AI-powered data security, and Veritas, a leader in secure multicloud data resilience, announced a definitive agreement that will see Cohesity combine with Veritas’ data protection business. This historic merger, valued at approximately $7 billion, aims to create a new vanguard in data security and management, promising accelerated innovation and enhanced customer experience through its comprehensive, multicloud data protection portfolio.

Under the terms of the agreement, Veritas’ data protection business will be carved out and combined with Cohesity, heralding a new era of AI-powered data security and management. This combination is anticipated to unlock significant R&D investments and foster one of the industry’s most robust partner ecosystems. Sanjay Poonen, appointed as the CEO and President of the merged entity, and Greg Hughes, current CEO of Veritas, who will transition to a Board member and strategic advisor role, will spearhead this initiative.

In today’s digital landscape, where ransomware threats loom large, organizations across the spectrum from IT practitioners to board members recognize the critical need for a cyber resilience strategy. The merger between Cohesity and Veritas is poised to directly tackle these challenges, offering organizations a comprehensive solution that combines powerful, simple user experiences with a high-performance, centrally-managed hyperconverged platform.

Cohesity to combine with Veritas’ data protection business in $7bn deal

The merged company promises a union of Cohesity’s rapid innovation and Veritas’ global presence, aiming to lead the next era of AI-powered data security and management. With a focus on scale-out architecture suited for modern workloads and strong generative AI and security capabilities, the combined portfolio will cater to the diverse needs of customers, featuring products that address both data security and insights.

The transaction, unanimously approved by the boards of directors of both companies, is expected to close by the end of 2024, subject to regulatory approval and customary closing conditions. The merger targets a total addressable market (TAM) of over $30 billion, with the combined company boasting revenues of over $1.6 billion, an annual recurring revenue (ARR) of $1.3 billion, and a 27 percent adjusted cash EBITDA margin on a pro forma basis for the fiscal year ending July 2023.

Supported by marquee investors including Softbank Vision Fund, Sequoia Capital, and others, and with new significant investors like Haveli Investments and Madrona joining the fold, the combined company is set for a trajectory of growth and innovation. The merger not only signifies a leap towards addressing the evolving cyber threats and complexities of hybrid cloud environments but also represents a strategic consolidation in the data security and management space, promising transformative solutions and unparalleled flexibility and scalability for customers.

The Cohesity and Veritas merger represents a pivotal moment in the data security and management industry, merging two giants’ strengths to offer groundbreaking solutions in the face of cyber threats and the demands of the multicloud era. This strategic union is expected to redefine the landscape of data protection, delivering innovative solutions and driving customer success in an increasingly data-driven world.