Cohesity and Veritas Merge to Form $7 Billion Data Protection Giant
Data protection startup Cohesity has finalized its merger with Veritas' enterprise data protection business. The combined entity boasts 12,000 customers, a $7 billion valuation, and $1.5 billion in annual recurring revenue. Led by Cohesity CEO Sanjay Poonen, the leadership team comprises executives from both companies.
Strategic Rationale
Poonen highlighted the fragmented nature of the data protection market as a key driver for the merger. The combined company aims to offer more comprehensive solutions and accelerate innovation. AI-driven automation will likely play a role in this strategy.
Product and Market Strategy
Both Cohesity and Veritas products, including NetBackup and Alta, will continue to be supported. The go-to-market strategy emphasizes a unified approach, with sales teams trained to sell both portfolios. Veritas' stronger global presence complements Cohesity's U.S.-centric customer base. This expansion aligns with trends in next-gen tech hubs like San Francisco.
Financial Implications and Future Outlook
The merger, funded by a Series H round led by Haveli Investments, creates significant growth opportunities. While consolidation may raise concerns about pricing, Cohesity currently has no plans for changes. The move positions the company favorably for a potential IPO, although no timeline has been announced. This growth trajectory mirrors the success of companies like Apple Vision Pro.