(Bloomberg) -- JPMorgan Chase & Co. beat private credit lenders to provide around $2.5 billion in debt financing to support Cohesity Inc.’s proposed acquisition of a unit of Veritas Technologies, according to a person with knowledge of the matter.

A group led by Oak Hill Advisors and Apollo Global Management Inc. had offered a competing financing proposal to the data-management software company, people with knowledge of the matter said, asking not to be named discussing a private transaction.

Representatives for Cohesity, JPMorgan, Oak Hill, and Apollo declined to comment.

Cohesity, which is backed by investors including SoftBank Vision Fund and Sequoia Capital, said earlier this month that it had reached an agreement to combine with the data protection business of Veritas Technologies to create a group with over $1.6 billion of revenue based on its most recent fiscal year. The transaction could be valued at $3 billion or more, Bloomberg News has reported. 

Read more: Private Credit Cuts Pricing to Fend Off Wall Street Deal Grab

The deal is the latest example of Wall Street investment banks elbowing out private credit firms to provide debt financing for acquisitions. Direct lenders are awash with cash and looking to put money to work. Meanwhile banks have been emboldened by the recent rally in corporate debt markets to underwrite new deals.

This week, a group of banks led by JPMorgan that undercut private lenders launched a $5 billion debt package for KKR & Co.’s acquisition of a stake in Cotiviti Inc. Earlier this month, a bank group led by Morgan Stanley and Goldman Sachs Group Inc swayed Ardonagh Group Ltd. to divert nearly half of a $5 billion financing away from private credit firms.

Read more: Ares Leads $3.3 Billion Private Loan for Ardonagh at Low Rate

--With assistance from Gowri Gurumurthy.

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