![Cohesity’s Strategic Move: Acquiring Veritas’ Data Protection Business for Billion to Fuel Innovation and Global Expansion” Cohesity’s Strategic Move: Acquiring Veritas’ Data Protection Business for Billion to Fuel Innovation and Global Expansion”](https://timesnewsexpress.com/wp-content/uploads/2024/02/1-10.png)
In a strategic move to enhance its capabilities and market presence, Cohesity, a U.S. data security software company backed by Japan’s SoftBank Group, has confirmed its agreement to acquire Veritas’ data protection business. The deal, valued at $7 billion, involves a combination of cash and stock, marking a significant step towards Cohesity’s pursuit of positive growth margins and international expansion.
READ: Kristin Cavallari Spills the Tea on Her Hottest Hookup – Prepare for a Surprise!
Cohesity
Cohesity’s CEO, Sanjay Poonen, emphasized the synergy between the two entities, stating that the collaboration leverages Cohesity’s rapid growth and Veritas’ strong profitability. Poonen envisions a profitable growth machine, driven by innovation with artificial intelligence (AI). The combined annual revenue of both companies is an impressive $1.6 billion, positioning them as a formidable force in the data security and protection sector.
Cohesity, headquartered in San Jose, California, specializes in AI-powered software designed to help organizations safeguard and manage their data against cybersecurity threats. The company is at the forefront of utilizing generative AI in collaboration with Big Tech to facilitate efficient search and retrieval of large data sets.
To fund this strategic acquisition, Cohesity successfully raised approximately $1 billion in equity and secured an additional $2 billion in debt from investors such as Haveli Investments, Premji Invest, and Madrona. The Veritas data protection business is now valued at over $3 billion, considering the included debt, showcasing the significance of this acquisition in Cohesity’s growth trajectory.
Veritas, majority-owned by private equity firm Carlyle Group, underwent a change of ownership in 2016 when Carlyle acquired the company from Symantec. Carlyle has opted to roll over its stake in the Veritas unit, with plans to join the board of the newly merged company. Greg Hughes, Veritas’ CEO, will also be part of the board.
The deal is expected to be finalized by the end of the year, marking a pivotal moment for both companies. As part of the arrangement, Veritas will establish a separate company, encompassing its remaining businesses focused on data compliance and backup services.
Cohesity boasts an impressive clientele, including major companies like Salesforce, Delta Air Lines, Nasdaq, and Broadcom. While Cohesity had contemplated an initial public offering in late 2021, it opted to delay the move due to market uncertainties resulting from macroeconomic volatility.
JPMorgan Chase, Simpson Thacher and Bartlett, and Gunderson Dettmer played pivotal roles in advising Cohesity on the acquisition. JPMorgan also provided committed financing for the deal, and PJT Partners served as debt capital markets advisor to Cohesity. On the other side, Guggenheim Securities, Morgan Stanley, and Latham & Watkins provided guidance to Veritas throughout the process.