Multi-cloud data management company Cohesity, delivering solutions to make it easy to protect, manage, and derive value from data across the data center, edge, and cloud, has announced a new company valuation of $3.7 billion. This is $1.2 billion higher than the company’s valuation less than 12 months ago.
The valuation was established in line with a $145 million tender offer made by investors to Cohesity employees who want the option to sell a small portion of their equity for liquidity. This non-dilutive transaction was led by STEADFAST Capital Ventures and supported by a syndicate of new and existing investors, including Premji Invest.
“We are pleased to enable this liquidity opportunity for our employees,” said Mohit Aron, CEO and Founder, Cohesity. “We believe the oversubscribed, non-dilutive tender offer based upon this increased company valuation speaks volumes about Cohesity’s performance and future outlook as the leading, modern data management company.”
The valuation comes as Cohesity is reporting record-breaking results from its fiscal second quarter ending Jan. 31, 2021. The company saw significant year-over-year (YoY) growth in annual recurring revenues (ARR), a continued surge in customer wins globally, and a rapidly increasing number of customers spending $5 million or more in total lifetime spend on Cohesity software. Cohesity also saw exceptional traction across its partner and service provider ecosystem.
Data Management as a Service
“Cohesity is firing on all cylinders with significant increases in annual recurring revenues, exceptional customer and partner momentum, and impressive growth in overall customer spend,” said Karan Mehandru, Managing Director and Head of Venture Capital, STEADFAST Capital Ventures. “The company also continues to introduce software innovations that are transforming data management – including Data Management as a Service. This game-changing SaaS technology is unleashing new opportunities for midsize and enterprise customers to simplify data management and do more with their data. At STEADFAST, our goal is to partner with exceptional entrepreneurs building iconic and durable companies that are built to last, and our partnership with Mohit and the Cohesity team is a shining example of that strategy at work.”
Cohesity helps to simplify data management while protecting, managing, and deriving value from data – across the data center, edge, and cloud. The company offers a full suite of services consolidated on one multi-cloud data platform: backup and recovery, disaster recovery, file and object services, dev/test, and data compliance, security, and analytics. These services would help to reduce complexity and eliminate mass data fragmentation. Cohesity can be delivered as a service, self-managed, or provided by a Cohesity-powered partner.
“Cohesity continues to disrupt the data management market. The Cohesity Helios multicloud data platform uniquely empowers organizations to easily manage their data, mitigate the risks of ransomware attacks, eliminate infrastructure silos, and solve mass data fragmentation,” said Sandesh Patnam, Managing Partner, U.S., Premji Invest. “Given Cohesity’s continued innovation, excellent NPS customer support scores, strong leadership, and vision for the future, we are very optimistic about Cohesity’s continued success in the market. We believe the new valuation is a fraction of the value Cohesity will be worth long-term.”