Veritas Technologies and Cohesity have announced a merger that will combine their data protection businesses to create a larger provider of security and management offerings. The two companies are emphasizing 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 as part of the merged company, while Veritas CEO Greg Hughes will become a member of the board of directors. Veritas’ user base in the federal government includes several key departments such as Defense, Justice, Transportation, Navy and Defense Information Systems Agency which have adopted their products.
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. All parties involved anticipate that the merger will be completed before the end of 2024.