Datto, the disaster recovery service, has had an interesting history. It raised a cool $100 million as a startup, including a $75 million investment in 2015, a significant round for that period. Vista Equity purchased the startup in 2017, but that wasn’t the end of its story, not by a long shot. Instead Vista built up the company and took it public in 2020.
Today, the journey took another twist when Kaseya, a provider of security and management services for internal IT departments and managed servers providers, bought the company for $6.2 billion.
With Datto, Kaseya is getting a company that provides services related to backup and disaster recovery. Should something go terribly awry with your systems, Datto enables you to download the most recent backup and get going again. Fred Voccola, Kaseya’s CEO, sees the two companies having a lot in common, and the backup and recovery services fit nicely into Kaseya’s product portfolio.
“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,” Voccola said in a statement.
Under the terms of the deal, Datto shareholders will receive $35.50 per share, which represents a 52% premium over the company’s stock price on March 16th. It’s worth noting, however, that the stock price is soaring today on the news up, over 20% and getting close to that offer price at $34.60 per share, as we were writing this story.
Kaseya is not forking over that kind of dough on its own, however. It’s getting help from a consortium of investment firms that includes Insight Partners, with help from TPG and Temasek. Sixth Street and other unnamed investors are also participating.
In its most recent quarter, the last one Datto will be reporting as a public company, the company announced revenue of $163 million for the quarter, up 18% year over year. Datto shareholders and the board have already approved the deal. If it passes regulatory oversight, the acquisition is expected to close some time in the second half of the year.