Veritas Technologies has announced its plan to merge its data protection business with Cohesity in a move that significantly reshapes the data protection and backup solutions sector. This strategic merger should greatly enhance research and development, improve customer support, and broaden business partnerships, setting a new industry standard.
The merged entity should show strong financial performance, with a pro forma annual revenue of $1.6 billion, $1.3 billion of which will likely be recurring. Valued at $7 billion, the merger showcases the complementary strengths of both companies. Cohesity CEO Sanjay Poonen will continue as CEO, with Veritas CEO Greg Hughes taking a strategic role on the board of directors, ensuring leadership continuity and ongoing innovation.
Veritas contributes a prestigious client list, especially within the federal government, including partnerships with the Departments of Defense, Justice, and Transportation. This merger is set to significantly boost Cohesity’s market presence by leveraging Veritas’ established relationships and operational expertise in key sectors.
The merger plans to keep certain Veritas segments — InfoScale, Data Compliance, and Backup Exec businesses — independent to focus on growth and specialization. This decision will transform market dynamics, particularly with Cohesity acquiring Veritas’ data protection assets. It highlights its dedication to leading the backup market through innovative enterprise customer solutions, compliance, governance intelligence, and AI-driven R&D.
At the core of this merger is a commitment to technological innovation, aiming to enhance features such as fast data recovery search, conversion of virtual machines to cloud formats, and the integration of AI for advanced support and data utilization. These advancements promise to set new benchmarks for data protection, backup solutions, and AI integration in the industry.
The merger strengthens Cohesity’s and Veritas’ market positions. Additionally, it provides strategic advantages by combining Veritas’ extensive international customer base and expertise in on-site backups, data governance, and cloud adaptation capabilities with Cohesity’s advanced solutions. Meanwhile, competitors like Rubrik are planning IPOs. Consequently, this emphasizes the merger’s timely potential to redefine industry standards and drive growth in the era of hybrid cloud backup solutions.
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