SoftBank Group -backed Cohesity told Reuters on Wednesday it agreed to acquire the data protection business of information technology company Veritas, in a deal that sources said is worth about $3 billion, including debt.
NEW YORK (Reuters) -U.S. data security software firm Cohesity told Reuters on Wednesday it has agreed to acquire Veritas' data protection business in a deal that values the combined entity at $7 billion. The cash and stock acquisition is expected to help Cohesity, which is backed by Japan's SoftBank Group, achieve positive growth margins and expand into international markets, Cohesity CEO Sanjay Poonen said in an interview, adding that the firms together have $1.6 billion in annual revenue. The deal comes at a time when Cohesity's biggest competitor Rubrik is, according to sources, planning to launch a stock market flotation in the coming weeks.
Cohesity has raised about $1 billion from investors, including Haveli Investments, Premji Invest and Madrona, to help fund the transaction, one of the sources said, requesting anonymity because the companies are not disclosing financial terms.
US data management company Veritas is selling its data protection unit to rival Cohesity, an American data security firm backed by SoftBank, Reuters announced late Wednesday.
SoftBank-backed data security vendor Cohesity has struck a deal to acquire Veritas' data security business in a move that will value the combined duo at $7bn