In a transformative move for the data security and management industry, Cohesity announced the completion of its acquisition of Veritas’ enterprise data protection unit, creating what CEO Sanjay Poonen calls “a new era in protecting the world’s data.”

With this deal, Cohesity has solidified its position as the world’s largest data protection software provider by market share, an achievement that promises to reshape the competitive landscape of the $40+ billion data protection market.

New Chat: Cohesity Becomes the World’s Largest Data Protection Powerhouse:

Scaling New Heights in Data Protection

The acquisition catapults Cohesity into an elite class of technology firms. The combined entity now serves over 12,000 customers, including 85% of the Fortune 100 and nearly 70% of the Global 500, protecting hundreds of exabytes of data worldwide. According to Cohesity’s recent announcement, the merger has positioned the company as the fastest in the sector to exceed $1.5 billion in annual revenue.

“This is a major milestone in our 11-year history,” Poonen told CNBC’s Closing Bell Overtime. “By combining Cohesity’s scale-out architecture and AI-driven security with Veritas’ extensive global footprint, we’re delivering unparalleled value to our customers.”

The transaction was funded by a Series H investment round led by Haveli Investments, alongside a Term Loan B facility arranged by JP Morgan. The deal values the combined entity at over $7 billion.

Driving Innovation Through AI and Security

The acquisition brings together Cohesity’s expertise in generative AI and zero-trust security principles with Veritas’ proven capabilities in enterprise data protection. This fusion aims to tackle critical challenges in data resilience and cyber threats, an area of increasing urgency as organizations integrate AI into their operations.

“As companies adopt generative AI, data security becomes even more critical,” Poonen noted. “Our focus is to secure the ‘secondary data’—the vast historical time-series data that’s particularly vulnerable to cyberattacks.”

NVIDIA CEO Jensen Huang echoed this sentiment, stating, “Cohesity is backing up and protecting the world’s data—a goldmine of business value that customers can unlock with generative AI.” NVIDIA, a key partner in Cohesity’s AI endeavors, is integrating its AI Enterprise platform with Cohesity’s solutions to enhance data insights and protection.

Commitment to Customers and Partners

Cohesity has emphasized its commitment to a “no customer left behind” strategy, ensuring that existing customers from both Cohesity and Veritas will continue to receive support for their products. This includes Veritas’ flagship NetBackup and NetBackup appliances, as well as Cohesity’s robust cloud-native data management tools.

“Our customers will benefit from the most comprehensive multicloud data protection portfolio in the industry,” said Poonen. “This includes everything from backup and recovery to advanced AI-driven insights.”

The integration also expands Cohesity’s global footprint, with a 24/7 customer success organization and one of the industry’s largest partner ecosystems. This includes collaborations with cloud service providers, VARs, MSPs, and technology partners, creating a robust network to deliver end-to-end data protection solutions.

Strategic Vision and Market Impact

Industry analysts have hailed the acquisition as a pivotal moment for the sector.

“This is the largest deal in the data protection space to date,” said Daniel Newman, CEO of The Futurum Group. “Cohesity now sits at the intersection of multi-cloud, security, and AI. With a TAM of over $40 billion, the company is poised for exponential growth.”

Newman added that the combination of Cohesity’s cutting-edge technology and Veritas’ legacy strength creates a compelling value proposition for global CIOs. “This is about more than just protecting data; it’s about turning it into a competitive advantage.”

Execution and Challenges Ahead

While the acquisition positions Cohesity as an industry leader, the integration presents significant challenges. Competitors, including Rubrik and Commvault, have been quick to point out potential distractions stemming from the merger.

“Our strategy is to stay number one by delivering unparalleled product innovation and customer obsession,” Poonen responded. “We’re humbled and hungry, and we’re ready to execute at scale.”

Poonen also outlined a clear roadmap for the integration, including plans to engage directly with the top 1,000 Veritas customers within 100 days. “This is about showing our commitment and building trust from day one,” he said.

As Cohesity charts its post-acquisition future, the company is eyeing an IPO as a potential next step.

“We’ve had significant investor interest,” Poonen said. “While our immediate focus is on seamless integration and customer success, an IPO remains an important milestone for our growth trajectory.”

The combination of Cohesity and Veritas represents not just a consolidation of capabilities but a redefinition of what’s possible in data protection and management. With an ambitious vision and a commitment to innovation, Cohesity is set to shape the future of how the world’s data is protected and leveraged.

As the dust settles on this historic deal, all eyes will be on Cohesity to see how it delivers on its promise to revolutionize the industry. The stakes are high, but so are the rewards for a company aiming to redefine the boundaries of data security and insights.