Cohesity, a data security and management firm, and Veritas, a provider of secure multicloud data resilience solutions, have announced a definitive agreement to merge.

This merger involving Cohesity and the data protection business of Veritas aims to create a new frontrunner in data security and management.

Sanjay Poonen will head the combined organisation as CEO and President, with Greg Hughes, Veritas’ CEO, serving as a Board member and strategic advisor to Poonen post-transaction.

Veritas CEO Greg Hughes said: “Veritas and Cohesity share a common vision of empowering businesses to protect their critical data assets in the face of evolving cyber threats and complex hybrid cloud environments.

“Bringing Veritas’ differentiated cloud-native architecture to Cohesity’s strong innovation engine will ideally position us to offer our customers transformative solutions against cyber attacks while delivering the flexibility and scalability required to thrive in the multicloud era.”

The joint company intends to leverage scaled R&D investments to accelerate innovations, enhance customer support, and expand its partner ecosystem. With data protection and insights becoming paramount, especially amid rising ransomware threats, the merger seeks to address these challenges head-on by combining the strengths of Cohesity and Veritas.

The merged entity will offer a comprehensive, multicloud data protection portfolio, emphasising simplicity, user experience, and performance. With a vast customer base, global reach, and strong partner network, the new company aims to drive innovation and cater to the evolving needs of the data security and management market.

This transaction, valued at approximately $7bn, is expected to close by the end of 2024, pending regulatory approval and customary closing conditions. Cohesity plans to finance the deal through a mix of equity and debt. The combined company, backed by marquee investors, is poised for long-term growth and innovation.

Additionally, the remaining assets of Veritas’ businesses will form a separate entity named “DataCo,” led by CEO Lawrence Wong. This move aims to enhance agility and customer focus, allowing for specialised solutions tailored to specific markets.

Cohesity president and CEO Sanjay Poonen said: “We are deeply committed to our mission to protect the world’s data. This deal will combine Cohesity’s speed and innovation with Veritas’ global presence and installed base.

“We will lead the next era of AI-powered data security and management by bringing together the best of both product portfolios – Cohesity’s scale-out architecture ideally suited for modern workloads and strong Generative AI and security capabilities and Veritas’ broad workload support and significant global footprint, particularly in the Global 500 and large public sector agencies.”

“This combination will be a win-win for our collective 10,000 customers and 3,000 partners, and I can’t wait to work with the Veritas team to bring our vision to life.”

Advisors involved in the transaction include J.P. Morgan Securities, PJT Partners, Guggenheim Securities, Morgan Stanley & Co., Simpson Thacher and Bartlett, Gunderson Dettmer, Alston & Bird, and Latham & Watkins.