In a landmark transaction that redefines the data protection and cyber resiliency market, Cohesity enters into a definitive agreement to merge with Veritas’ data protection business and create a new entity focused on the data protection and management market announced that it did.
transaction
The nature of the merger agreement is to create a new entity with estimated combined annual revenues of $1.6 billion and annual recurring revenues of $1.3 billion.
The combined entity will have an expanded global footprint and serve more than 10,000 customers, including most of the Fortune 100 companies. This vast customer base underscores the combined company’s strong market presence and influence, especially in managing vast exabytes of critical data.
The deal promises that significant R&D investments will accelerate product innovation in areas such as cloud, security and AI, ensuring a continued flow of advanced data protection and management solutions.
Cohesity’s current CEO, Sanjay Poonen, will lead the new organization as CEO and president, and Veritas CEO, Greg Hughes, will serve as a board member and strategic advisor. This leadership structure is expected to ensure a smooth transition and integration of the operations and cultures of both companies.
The combination of Cohesity and Veritas innovations provides organizations with a broad multi-cloud data protection portfolio that promises to significantly advance the data security and management landscape.
Analyst’s view
Combining Cohesity’s capabilities with Veritas’ data protection capabilities is a disruptive and transformative move in the data protection and cyber resiliency market.
This merger is a clear response to escalating cyber threats, particularly ransomware, and highlights the need for advanced and resilient data protection solutions. By combining Cohesity’s strengths in AI-powered data management and Veritas’ capabilities in multi-cloud data resiliency, the new company is poised to offer one of the most robust portfolios on the market.
Financially, the merger will create a behemoth with estimated annual revenues of $1.6 billion and ARR of $1.3 billion, with significant market impact. When you combine a customer base that includes a notable portion of the Fortune 100, you quickly gain significant market presence and influence. This scale will benefit the combined company in terms of market reach and position it to drive innovation and set new benchmarks in data security and management.
From a customer and partner perspective, the merger promises an expanded set of solutions and services. The synergy between Cohesity and Veritas is expected to create a more comprehensive, efficient and secure data management solution, delivering tangible benefits to customers and opening new avenues for partners. Each company is highly regarded throughout the industry and this should be viewed as a merger of companies that share a common vision.
This merger is a strategic move that reflects the evolving needs of the industry. This highlights the importance of scale, innovation and comprehensive solutions in addressing modern cybersecurity challenges. As the merger progresses, the impact on customers, partners and the overall market will become clearer. This is a strong move for both companies and should be applauded by their respective customer bases.
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