Cohesity, a U.S. data security software company, has agreed to purchase Veritas' data protection business, creating a combined entity valued at $7 billion.

CEO Sanjay Poonen anticipates the acquisition will help the company achieve favorable growth margins and expand into global markets.

The combined annual revenue of the two businesses is $1.6 billion, which is a number that is considered to be quite substantial.

The company that is currently known as Cohesity is receiving financial assistance from the Japanese SoftBank Group.

 The acquisition of the Veritas unit by Cohesity values the business at a total of more than $3 billion, taking into account the debt.

The private equity firm Carlyle Group, which purchased Veritas from Symantec in 2016, is now its predominant owner.

Greg Hughes, who serves as the Chief Executive Officer of Veritas, will will also be appointed by the board.

Greg Hughes, who serves as the Chief Executive Officer of Veritas, will will also be appointed by the board.