SaaS-focused data protection firm Cohesity has announced it is acquiring the data protection arm of Veritas, which specializes in multi-cloud and on-premises data security, for USD 3 billion. The deal is expected to close by the end of 2024, subject to regulatory approval.

Veritas provides data protection across multi-cloud environments, offering both appliance-based (NetBackup) and cloud-native (Alta Data Protection) solutions. The Carlyle Group, majority owner of Veritas, will roll over its stake to become shareholders of Cohesity.

The merged companies will reportedly operate as a single entity under the Cohesity name, with the combined company expected to exceed USD 7 billion in value, with USD 1.6 billion in revenues, including USD 1.3 billion in annual recurring revenue (ARR) and a 27% profit margin. 

Cohesity says the deal will allow it to provide the most comprehensive data protection solution, combining its own offering, which caters to modern workloads, with Veritas’ broad applicability.

Analyst QuickTake: Another notable deal in the data security space was Rubrik ’s acquisition of DSPM firm Laminar in August 2023. The deal is also reflective of a broader consolidation and product rationalization trend seen across the cybersecurity industry to offer unified solutions and minimize tool sprawl.