Cohesity and Veritas’ Data Protection Business to Combine, Forming a New Leader in AI-Powered Data Security and Management

Cohesity, a leader in AI-powered data security and management, and Veritas, a leader in secure multicloud data resilience, are announcing their definitive agreement under which Cohesity intends to combine with Veritas’ data protection business, which will be carved out of Veritas, to create a new leader in data security and management. Customers will benefit from the accelerated innovations unlocked by the joint company’s scaled R&D investment, its unwavering support for customer success, and one of the industry’s most extensive partner ecosystems.

Sanjay Poonen will lead the combined organisation as CEO and President. Greg Hughes, CEO of Veritas, will serve as a Board member and strategic advisor to Sanjay Poonen after the close of the transaction.

Protecting the world’s data and gaining insights from that data are top imperatives for IT practitioners all the way to board members. Given the rampant threat of ransomware, every organisation needs a cyber resilience strategy. Furthermore, technology and business executives now have a unique opportunity to leverage the power of generative AI for data-driven insights to unleash new levels of efficiency, innovation, and growth.

The combined innovations of Cohesity and Veritas will address these challenges directly, offering organisations a comprehensive, multicloud data protection portfolio with a powerful, simple user experience, and a high-performance, centrally-managed hyperconverged platform. This highly complementary combination will create a new leader in data security and management with numerous product offerings to help customers address their needs for data security and data insights. The combined company will bring together 100s of exabytes of data protected, a global go-to-market footprint, high penetration in the enterprise with 96 of the Fortune 100 and 80% of the Global 500, and a strong partner ecosystem across all segments of cloud service providers, security players, VARs, system integrators, and hardware OEMs.

The combined company will continue to invest in and advance the roadmap and strategy of all Cohesity products and services, as well as Veritas NetBackup, NetBackup appliances, and Alta data protection offerings, while working towards the delivery of an integrated solution combining the best technology across the two companies.

“We are deeply committed to our mission to protect the world’s data. This deal will combine Cohesity’s speed and innovation with Veritas’ global presence and installed base. We will lead the next era of AI-powered data security and management by bringing together the best of both product portfolios – Cohesity’s scale-out architecture ideally suited for modern workloads and strong Generative AI and security capabilities and Veritas’ broad workload support and significant global footprint, particularly in the Global 500 and large public sector agencies,” said Sanjay Poonen, President and CEO of Cohesity. “This combination will be a win-win for our collective 10,000 customers and 3,000 partners, and I can’t wait to work with the Veritas team to bring our vision to life.”

Greg Hughes, CEO of Veritas, stated, “Veritas and Cohesity share a common vision of empowering businesses to protect their critical data assets in the face of evolving cyber threats and complex hybrid cloud environments. Bringing Veritas’ differentiated cloud-native architecture to Cohesity’s strong innovation engine will ideally position us to offer our customers transformative solutions against cyber attacks while delivering the flexibility and scalability required to thrive in the multicloud era.”

“Both companies have high Net Promoter Scores and share a steadfast, long-term commitment to customers. Existing products will continue to be supported for many years while leveraging joint best-of-breed technologies to provide the most innovative roadmap for a future that delights customers,” Poonen continued. “We are deeply committed to both Cohesity and Veritas customers, partners, and employees as we accelerate customer-driven innovation as one company.”

“I believe customers could benefit from the combination of Cohesity’s simple and secure, high-performance platform and AI-enabled data insights together with Veritas’ global footprint and cloud-native capabilities,” said Patrick Moorhead, Founder, CEO, and Chief Analyst at Moor Insights and Strategy. “The combined company will benefit from scaled R&D efforts and industry-leading capabilities to help make customers more secure and offer them advanced capabilities in data management and insights.”

Together, the companies will target a total addressable market (TAM) of over $30 billion. This figure includes the data replication and protection software market, estimated to be $12.2 billion in 2024 by IDC. The expanded go-to-market breadth, geographic footprint, and R&D resources will allow the combined company to accelerate new customer adoption and help drive the deployment of innovative solutions within the fast-growing data security and management segment.

The combination will provide compelling benefits for customers, with increased resources to invest in technology innovation while simultaneously adding scale to support customers worldwide. On a pro forma basis for the fiscal year ending July 2023, the combined entity had revenues of over $1.6 billion, annual recurring revenue (ARR) of $1.3 billion, and a 27 percent adjusted cash EBITDA margin. Further, the combination will augment long-term growth with incremental product and geographic expansion opportunities, ensuring customers can access best-in-class tools and services to safeguard their data.