Cohesity to Acquire Veritas’s Data Protection Business in $7 Billion Deal
Cohesity Agrees to Acquire Veritas’s Data Protection Business
U.S. data security software firm Cohesity has announced its agreement to acquire Veritas’s data protection business. This deal is set to value the combined entity at $7 billion, presenting a significant development in the data security industry.
Impact of the Acquisition
Cohesity CEO Sanjay Poonen expressed optimism about the cash and stock acquisition, believing it will contribute to positive growth margins for the combined entity. With annual revenue of $1.6 billion, the collaboration is expected to create a profitable growth machine that innovates with AI.
Investment and Valuation
San Jose, California-based Cohesity has raised substantial funding from investors including Haveli Investments, Premji Invest, and Madrona, amounting to about $3 billion in equity and $2 billion in debt. The acquisition of the Veritas unit is estimated to value the business at over $3 billion, including debt.
Technological Advancements
Cohesity’s artificial intelligence-powered software is designed to help organizations protect and manage their data against cybersecurity threats, reflecting a critical focus on cutting-edge technology. This acquisition further reinforces their commitment to staying ahead in the rapidly evolving digital landscape.
Carlyle Group’s Involvement
Veritas is majority-owned by private equity firm Carlyle Group, which will roll over its stake in the unit and join Cohesity’s board after the deal closes. This strategic alignment highlights the collaborative efforts of key industry players towards a shared vision for the future of data security.
The acquisition of Veritas’s data protection business by Cohesity is a significant move that has the potential to reshape the data security landscape, creating a $7 billion entity poised for growth and innovation. The combination of cutting-edge technology, strategic investments, and collaborative efforts will likely pave the way for a new era in data protection.
