Cohesity: Major Acquisition of Veritas Reinforces Data Protection Leadership
Deal News | Dec 11, 2024 | EIN
Cohesity, a leading AI-powered data security company, has completed its acquisition of Veritas' enterprise data protection business, making it the largest provider of data protection software by market share. The merger, funded by a Series H investment round led by Haveli Investments with contributions from Coatue, Sapphire Ventures, and Dragon Fund, positions Cohesity to achieve its growth objectives and become a prominent figure in data protection with over $1.5 billion in revenue. Brian Sheth, CIO of Haveli Investments, anticipates the union will consolidate resources, improve product innovation, and fortify Cohesity's leadership role. Coupled capabilities in cloud-scale data security, AI-driven insights, and comprehensive multi-cloud data protection represent a transformative step for Cohesity under CEO Sanjay Poonen's guidance. The consolidation furthers Cohesity’s commitment to a diversified product portfolio that incorporates Veritas’ NetBackup services. The acquisition underscores a strategic approach to data security and resilience in a $40 billion total addressable market, with projected growth as per IDC projections.
Sectors
- Data Protection Software
- Artificial Intelligence
- Private Equity & Venture Capital
Geography
- United States – Cohesity is based in the United States, which is a significant market for technology and data protection advancements.
Industry
- Data Protection Software – Cohesity and Veritas are engaged in providing software solutions aimed at protecting, securing, and managing enterprise data, a sector that is crucial given increasing data privacy and security concerns.
- Artificial Intelligence – Cohesity utilizes AI-driven technology to enhance data security and management capabilities, offering insights and improving cyber-resilience.
- Private Equity & Venture Capital – The acquisition was funded by a Series H investment round, indicating involvement from PE and VC firms such as Haveli Investments, Coatue, Sapphire Ventures, and Dragon Fund.
Financials
- $1.5 billion – Revenue of Cohesity, marking it as one of the fastest data protection vendors to achieve this milestone.
- $40 billion – Total addressable market (TAM) targeted by Cohesity post-acquisition.
- Over $7 billion – Valuation of the new combined entity of Cohesity after the acquisition.
- $12.3 billion – Expected vendor sales in the data replication and protection software market by 2024 according to IDC.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Cohesity | Acquirer | Company | Cohesity is a company specializing in AI-powered data security, now becoming the largest data protection software provider by merging with Veritas. |
| Veritas | Target | Company | Veritas was a leading enterprise data protection business, acquired by Cohesity to enhance its market position. |
| Haveli Investments | Lead Investor in Series H | Company | Haveli Investments led the Series H investment round that funded Cohesity’s acquisition of Veritas. |
| Coatue | Investor | Company | Coatue participated in the Series H investment round for Cohesity. |
| Sapphire Ventures | Investor | Company | Sapphire Ventures also took part in the Series H investment round. |
| Dragon Fund | Investor | Company | Dragon Fund was an investor in the Series H funding round. |
| Brian Sheth | CIO of Haveli Investments | Person | Brian Sheth commented on leading the investment round to support Cohesity’s acquisition of Veritas. |
| Sanjay Poonen | President and CEO of Cohesity | Person | Sanjay Poonen highlighted the merger's strategic significance for Cohesity’s cyber-resilience and data insight capabilities. |
| Daniel Newman | CEO, The Futurum Group | Person | Daniel Newman provided insights on the market and competitive impact of the merger. |