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February 8, 2024
Reuters reports Cohesity CEO Sanjay Poonen as saying that the cash and stock acquisition will help the firm achieve positive growth margins and expand into international markets. He added that the two will have $1.6 billion in annual revenue.
Cohesity's Sanjay Poonen
“You’ve got the fastest growth on our side and the best profitably on their side, combined together to be a profitable growth machine that’s innovating with AI,” Poonen said in an interview.
“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," said Greg Hughes, CEO of Veritas, in a joint news release announcing the acquisition Thursday. "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.”
The combined Cohesity-Veritas will continue to invest in all of Cohesity's products and services, as well as Veritas' NetBackup and appliances, and its Alta data protection products and services. The two companies say they will work toward an integrated solution that combines the best technology from both.
Cohesity expects the deal, pending regulatory approval, will close by the end of 2024.
But rival Commvault has said the acquisition will “create chaos.”
Commvault's Sarv Saravanan
“This deal between Cohesity and Veritas could create complete chaos for customers, “ said Commvault’s chief customer officer, Sarv Saravanan. “Platform integration challenges and redundant product portfolios could take years to address. With cyberattacks increasing in severity and frequency, there’s no time for that.”
Veritas is majority-owned by private equity firm Carlyle Group, which acquired the company from Symantec in 2016. Carlyle has rolled over its stake in the unit and will join the board of the newly merged company. Veritas CEO Greg Hughes will also join the board, according to reports.
Veritas will form a separate company that will comprise its remaining businesses, including data compliance and backup services.
The companies expect the deal to close by the end of the year.
Elsewhere, it is rumored that Cohesity competitor Rubrik is planning to go public in the coming weeks. It has already registered its IPO with the SEC, CNBC reports.
Read more about:VARs/SIs
Contributing Editor, Channel Futures
Christine Horton writes about all kinds of technology from a business perspective. Specializing in the IT sales channel, she is a former editor and now regular contributor to leading channel and business publications. She has a particular focus on EMEA for Channel Futures.
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