Data security firm Cohesity will buy Veritas’ data protection business, the two firms announced Jan. 8th, creating a data security and management giant valued at roughly $7 billion.
According to Cohesity, “the new company will continue to invest in and advance the roadmap and strategy of all Cohesity products and services, as well as Veritas NetBackup, NetBackup appliances, and Alta data protection offerings, while working towards the delivery of an integrated solution combining technologies between the two companies.”
Sanjay Poonen, the current CEO and President at Cohesity, will lead the combined entity, which on a pro forma basis for the fiscal year ending July 2023, had revenues of over $1.6 billion, annual recurring revenue (ARR) of $1.3 billion, and a 27 percent adjusted cash EBITDA margin.
It is unclear from the announcement if the Cohesity name will remain after the transaction is complete, or if the “combined company” referenced will be renamed.
The transaction is expected to close by the end of 2024, and Cohesity said it would finance the transaction through a combination of equity and debt.
The remaining assets of Veritas’ businesses will form a separate company to be called DataCo, the announcement said, which will be led by Lawrence Wong, currently Senior Vice President of Strategy and Products at Veritas, with a product portfolio including Veritas’ InfoScale, Data Compliance, and Backup Exec.
Greg Hughes, CEO of Veritas, will serve as a Board member and strategic advisor to Sanjay Poonen after the close of the transaction.