Data security firm Cohesity has spent £5 billion to buy Veritas’ data security business, creating a £10 billion mega-merger.
Reuters revealed the deal, which will see Cohesity take over Veritas’ data protection unit. The unit is valued at over £2 billion, including debt.
Cohesity’s boss, Sanjay Poonen, said the cash and stock acquisition will help the firm boost its growth and profitability and expand into new markets.
He also claimed the merger will create a “profitable growth machine” that will innovate with AI.
However, analysts are not that keen on the deal, which they see as a risky move that could backfire for both firms and their customers.
