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Exclusive-SoftBank-backed Cohesity in $3 billion deal for Veritas' data protection unit

Author: MSN.com – Krystal Hu & Anirban Sen

…” SoftBank Group -backed Cohesity told Reuters on Wednesday it agreed to acquire the data protection business of information technology company Veritas, in a deal that sources said is worth about $3 billion, including debt.”…
…”Cohesity's artificial intelligence-powered software helps organizations protect and manage their data against cybersecurity threats.”…
…”Veritas is majority-owned by private equity firm Carlyle Group, that acquired the business from Symantec in 2016.”…

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Editor Comment:

I rarely comment on M&A outside of eDiscovery market, but as a former Symantec-Veritas PM alumni I track the fate of my former products and peers. To put this in context, Carlyle Group paid $7.4 billion for Veritas in 2016. Veritas revenue and share price have stumbled recently, which may explain the massive drop in value. Underneath what looks like a fire sale is a brighter prospect for investors. IF Cohesity’s AI technology can be quickly integrated with the Veritas architecture, it could spark a wave of fast inside sales revenue from the massive Veritas customer base. That may explain why Carlyle Group rolled over its equity instead of exiting. I have not briefed with the Veritas team or done any independent research, so take this as an off the cuff opinion from someone more interested in where the products will go than the actual market financials.

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