Cohesity, an AI-powered data security and management company, and Veritas have announced a definitive agreement under which Cohesity intends to combine with Veritas’ data protection business, which will be carved out of Veritas, to create a new leader in data security and management. The transaction, expected to close by the end of 2024, values the combined company at approx. $7 billion.

Sanjay Poonen will lead the combined organization as CEO and President. Greg Hughes, CEO of Veritas, will serve as a Board member and strategic advisor to Sanjay Poonen after the close of the transaction.

Together, the companies will target a total addressable market (TAM) of over $30 billion. The combined innovations of Cohesity and Veritas will offer organizations a comprehensive, multicloud data protection portfolio with a powerful, simple user experience, and a high-performance, centrally-managed hyperconverged platform. This highly complementary combination will create a new leader in data security and management with numerous product offerings to help customers address their needs for data security and data insights.

The combined company will continue to invest in and advance the roadmap and strategy of all Cohesity products and services, as well as Veritas NetBackup, NetBackup appliances, and Alta data protection offerings, while working towards the delivery of an integrated solution combining the best technology across the two companies.

On a pro forma basis for the fiscal year ending July 2023, the combined entity had revenues of over $1.6 billion, annual recurring revenue (ARR) of $1.3 billion, and a 27 percent adjusted cash EBITDA margin. Further, the combination will augment long-term growth with incremental product and geographic expansion opportunities, ensuring customers can access best-in-class tools and services to safeguard their data.