Cohesity, a leading provider of security software, has made a significant public announcement regarding its intention to acquire data security firm Veritas, a move that is poised to elevate the valuation of the combined entity to over $7 billion. This acquisition comes as a surprise, especially considering Cohesity’s recent declaration of its plans to go public and enter the stock market in the coming months.
Cohesity is renowned for its AI-powered integration capabilities within its proprietary software, which simplifies the process of searching for and recovering large datasets, offering users a seamless experience.
Previously a part of the Carlyle Group following its acquisition from Symantec in 2016, Veritas will now undergo a merger with Cohesity, with Veritas CEO, Grey Hughes, set to join Cohesity’s management team. The completion of this deal is anticipated by the end of 2024, pending compliance with all data regulations and backup and recovery protocols in accordance with existing laws.
In January 2023, industry analysts predicted a subdued year for mergers and acquisitions, citing factors such as a sluggish economic climate and the uncertainty surrounding the 2024 election as potential influencers on deal-making activity. Consequently, the completion of the Cohesity-Veritas merger may occur as early as May of this year or as late as September 2024.
With both companies poised to join forces, there is speculation within the industry that the resulting synergy could establish a formidable presence in the data security sector, potentially reshaping its landscape in the foreseeable future.
