Cohesity Acquires Veritas’ Data Protection Business
Cohesity has announced its acquisition of Veritas’ data protection business. The two companies will merge under the Cohesity name, creating a combined company with an estimated value of $7 billion. The new company will focus on data security and data management, combining Cohesity’s expertise in SaaS applications with Veritas’ support for protecting on-premises data.
Sanjay Poonen, the current CEO of Cohesity, will lead the blended company, with Veritas CEO Greg Hughes serving as a board member and strategic adviser. Veritas’ remaining assets and businesses will form a separate company called DataCo, which will operate autonomously under the leadership of Lawrence Wong, Veritas’ current senior vice president of strategy and products.
The deal, which was unanimously approved by the boards of directors at Cohesity and Veritas, is expected to close by the end of 2024, pending regulatory approval. Once the deal is finalized, Cohesity will have a collective 10,000 customers and 3,000 partners, as well as a presence in 96 of the Fortune 100 companies.
The acquisition is significant in the data protection market, as it marks the first time in recent years that one competitor has bought another outright, according to Brent Ellis, a senior analyst at Forrester Research. The merged capabilities and customer bases of Cohesity and Veritas make for a strong combination.
As part of the deal, Cohesity aims to follow a “no customer left behind” approach for both Veritas and Cohesity customers. The companies expect to finalize their plans for the future offering by the estimated close of the transaction in late 2024.
Overall, the acquisition highlights the continued evolution of the data protection market as companies seek to enhance their offerings and reach a broader customer base.