Veritas Technologies and Cohesity are joining forces to create a larger provider of security and management offerings in the data protection business. The combined entity aims to increase investments in research and development, enhance customer support, and expand business partnerships.
The two companies anticipate the new entity to generate a pro forma annual revenue of $1.6 billion, with $1.3 billion of it being recurring. The valuation of the combined entity is estimated at $7 billion. Sanjay Poonen, the CEO of Cohesity, will continue to lead the new entity, while Veritas CEO Greg Hughes will join the board of directors.
Veritas Technologies has a strong user base in the federal government, including the Defense, Justice, and Transportation departments, as well as the Navy and Defense Information Systems Agency.
The merger will not include certain parts of Veritas, such as the InfoScale, Data Compliance, and Backup Exec businesses. These components will form a separate business entity and operate autonomously.
All parties involved in the merger anticipate that it will be finalized before the end of 2024.