Norwalk’s Datto acquired for $6.2B - Westfair Communications

Datto Holding Corp, the Norwalk-headquartered provider of cloud-based software and security solutions, has been acquired by Kaseya, a Miami-based provider of unified IT management and security software, in a $6.2 billion all-cash transaction.

The transaction is expected to close in the second half of 2022, pending regulatory approvals. Upon completion, Datto”™s common stock will no longer be listed on the New York Stock Exchange.

Datto was founded by software programmer Austin McChord in 2007. The company was acquired in late 2017 by Vista Equity Partners for $1.5 billion, which merged the company with its portfolio holding Autotask Corporation. Datto has been publicly-traded since October 2020, and its most recent earnings report (the Q4 2021 data published on Feb. 23) Datto reported revenue of $164.3 million, up from $139 million one year earlier, and net income of $5.7 million compared to the $7.2 million net loss from the same period in the previous year.

“Datto has always been committed to creating world-class technology for SMBs [small to medium-sized businesses] and delivering it through our global network of MSPs [managed service providers] to align our growth with the channel,” said Tim Weller, CEO of Datto. “Combining with Kaseya brings together a broader array of technology products to create additional opportunities for MSPs. I”™m encouraged by the continued investment in the rapidly-expanding global MSP community, and this transaction is another important validation of the channel.”

“This is exciting news for Kaseya”™s global customers, who can expect to see more functional, innovative and integrated solutions as a result of the purchase,” said Fred Voccola, Kaseya”™s CEO. “Datto has a legendary commitment to its customers and employees. The alignment of our missions and focus makes us a natural fit, that will help our greatly appreciated customers reach new levels of success.”