Cohesity Plans Employee Share Sale, Deferring IPO

One of enterprise software’s bitter rivalries—between data security firms Rubrik and Cohesity—came to a head last year when Rubrik went public in an offering with a nearly $7 billion valuation. Now Cohesity, which is still private, is pitching investors on the notion that it’s the better deal.

The Santa Clara, Calif.–based startup, which like Rubrik helps businesses manage and protect data against ransomware attacks, has told potential investors in a planned employee share sale that it expects to generate $2.2 billion in revenue in the 12 months ending in July, according to a person who has spoken to managers of the planned sale. Cohesity, which is profitable on a free cash flow basis, is planning the sale at a $8 billion valuation, the person said.