Cohesity and Veritas Technologies are set to merge, creating a larger provider of security and management offerings. The two companies announced that the merger will allow for increased research-and-development investments, improved customer support, and expanded partnerships. The combined pro forma annual revenue is estimated to be $1.6 billion, with $1.3 billion of it recurring, and the valuation is projected to be $7 billion.
Sanjay Poonen, CEO of Cohesity, will continue in his role, while Veritas CEO Greg Hughes will become a member of the board of directors. The merger is expected to bring together two companies with complementary products and services that focus on data protection and management.
Veritas’ user base in the federal government includes the Defense, Justice, and Transportation departments, as well as the Navy and Defense Information Systems Agency. These entities have adopted Veritas’ products because of their reliability and security features.
The parts of Veritas that are not merging with Cohesity, including the InfoScale, Data Compliance, and Backup Exec businesses, will form an as-yet-unnamed business and will function autonomously. This means that customers who use these products can continue to receive the same level of support they have been getting from Veritas without any disruption in service. All parties involved anticipate that the merger will be completed before the end of 2024.
Overall, this merger is expected to create a stronger company with a wider range of offerings for its customers. It also shows how important data protection has become in today’s digital landscape where data breaches can have devastating consequences on businesses.