Oct 21 (Reuters) - Veeam Software has agreed to buy data

privacy management software maker Securiti AI for about $1.73

billion, in a bid to tap customers seeking to safeguard and

manage cloud data used in artificial intelligence applications.

The deal would integrate Securiti AI's Data Command Center

product, used to unify and secure data scattered across multiple

cloud services, with Veeam's backup and recovery software, the

companies said on Tuesday.

Veeam aims to better compete with rivals such as Rubrik ( RBRK )

and Commvault Systems ( CVLT ) with the acquisition, as

cybersecurity incidents surge.

Securiti AI Chief Executive Rehan Jalil will join Veeam as

president of security and AI after the transaction closes, which

is expected in the fourth quarter, the companies said.

Morgan Stanley advised Securiti AI on the transaction and

JPMorgan provided financing to Veeam.

The companies said Veeam will continue to offer the San

Jose, California-based Securiti AI's Data Command Center product

and plans to announce integrated capabilities soon.

In December last year, U.S. private equity firm Insight

Partners, which is the largest shareholder in Veeam, said it

sold a $2 billion stake in the company in a secondary sale

valuing the firm at $15 billion.

Veeam was acquired by Insight Partners for about $5 billion

in 2020.

Veeam's software helps customers quickly recover their data

after cybersecurity incidents including ransomware attacks as

well as accidental data loss. Its core product supports

immutable backups to prevent ransomware from modifying or

deleting data, ensuring that clean copies remain available for

recovery even if hackers encrypt files.