Veritas Technologies agrees to merge data business with Cohesity

Veritas Technologies is taking its data protection business and merging it with Cohesity to create a larger provider of security and management offerings.

Both companies are touting the combined entity as being able to increase research-and-development investments, customer support and expand the partnerships of the businesses.

Cohesity and Veritas are also estimating the combined pro forma annual revenue at $1.6 billion with $1.3 billion of it recurring, as well as an valuation of $7 billion.

Cohesity CEO Sanjay Poonen will continue in that role, while Veritas CEO Greg Hughes will become a member of the board of directors.

Veritas' user base in the federal government includes the Defense, Justice and Transportation departments. The Navy and Defense Information Systems Agency are also listed as adopters of Veritas' products. 

The parts of Veritas that are not merging with Cohesity include the InfoScale, Data Compliance and Backup Exec businesses. They will form an currently-unnamed business and will function autonomously.

All parties expect the merger to close before the end of 2024.