Veritas Technologies and Cohesity have announced a strategic merger to combine their data protection businesses, with the aim of creating a larger and more comprehensive provider of security and management offerings. The merger is anticipated to result in increased research investments, improved customer support, and expanded partnerships for the combined entity.
The two companies predict that the new entity’s combined pro forma annual revenue will reach $1.6 billion, with $1.3 billion of that being recurring revenue. Additionally, the valuation of the merged business is estimated to be around $7 billion.
Sanjay Poonen, CEO of Cohesity, will continue to lead the company under the new arrangement, while Greg Hughes, CEO of Veritas, will transition to a role on the board of directors.
It is noteworthy that not all segments of Veritas will be impacted by this merger. The InfoScale, Data Compliance, and Backup Exec businesses of Veritas will remain separate and form a standalone entity, operating independently from the merged businesses.
Veritas Technologies has a strong presence in the federal government sector, servicing clients such as the Departments of Defense, Justice, and Transportation, as well as the Navy and Defense Information Systems Agency.
The merger is slated to be finalized prior to the end of 2024.
In other related news, Crimson Phoenix has recently acquired two new businesses as part of its expansion strategy.
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