U.S. data security software firm Cohesity has announced its agreement to acquire Veritas’ data protection business in a deal valuing the combined entity at $7 billion. The cash and stock acquisition is anticipated to boost Cohesity’s growth margins and facilitate international market expansion. With both companies generating a total annual revenue of $1.6 billion, Cohesity’s CEO, Sanjay Poonen, emphasized the strategic combination of their strengths, foreseeing a profitable growth machine with a focus on AI-driven innovation. The deal positions Cohesity to harness the fastest growth alongside Veritas’ strong profitability.
This acquisition takes place as Cohesity’s main competitor, Rubrik, reportedly prepares for an upcoming stock market flotation. Cohesity, headquartered in San Jose, California, specializes in AI-powered software designed to assist organizations in safeguarding and managing their data against cybersecurity threats. The company has secured approximately $1 billion in equity and $2 billion in debt from investors like SoftBank Group, Haveli Investments, Premji Invest, and Madrona to fund the transaction. The takeover of Veritas’ unit values the business at over $3 billion, including debt. Veritas, majority-owned by private equity firm Carlyle Group, will see Carlyle maintaining its stake in the unit and gaining representation on the board of the newly merged company. Greg Hughes, CEO of Veritas, will also join the board as part of this strategic move.