Cohesity buys Veritas unit to create $7bn cyber firm

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.

The tie-up, which is said to create a combined company worth $7bn, values the Veritas division at more than $3bn including debt and will generate $1.6bn in annual revenue, Reuters said.

"You've got the fastest growth on our side and the best profitably on their side, combined together to be a profitable growth machine that's innovating with AI," said Cohesity chief executive Sanjay Poonen in an interview.

The deal, which will help Cohesity further expand into international markets, comes amid speculation that Cohesity's cyber competitor Rubrik is contemplating listing on the New York Stock Exchange as early as April.

Cohesity, whose client list includes 42 Fortune 100 companies and seven of the top 20 US banks, is said to have confidentially filed for an IPO back in 2021 but pulled the flotation due to macro volatility.