Cohesity Acquires Veritas Division in $3 Billion Deal
Cohesity has agreed to acquire Veritas’ data protection business, positioning the combined entity at a valuation of $7 billion
Cohesity has agreed to acquire Veritas’ data protection business, positioning the combined entity at a valuation of $7 billion (approximately €6.5 billion).
In an interview with Reuters, CEO Sanjay Poonen stated, “You’ve got the fastest growth on our side and the best profitability on their side, combined together to be a profitable growth machine that’s innovating with AI.” The merger is expected to enhance the company’s reach in international markets.
According to Bloomberg sources, Cohesity is paying upwards of $3 billion for the Veritas division. Together, the companies generate approximately $1.6 billion in annual revenue.
Strategic Combination
Cohesity specializes in software that helps companies protect and manage data, particularly against cyber threats. Established just over a decade ago, Cohesity counts Salesforce, Nasdaq, and Broadcom among its clients. Initially planning an IPO in 2021, the company paused those efforts due to broader economic conditions, although investment firm SoftBank remains a stakeholder in Cohesity.
Veritas’ data protection business has been a longstanding competitor in the sector. Private equity firm Carlyle Group acquired a majority stake in Veritas from Symantec in 2016, and with this transaction, Carlyle will transfer its stake and gain a seat on the board of the merged company. Veritas CEO Greg Hughes will also join the board.
The remaining Veritas operations, focused on data compliance and backup services, will continue as a separate entity. The acquisition is expected to close by year-end, pending regulatory approval.