**Editor’s Note: Please click here for a recap of the biggest channel-impacting mergers in November-December 2016.**

Datto is building its networking capabilities with the acquisition of a new company.

Datto is buying the cloud-based networking provider Open Mesh in a deal it says will give MSPs the most comprehensive portfolio of data-protection solutions.

Matt Richards, vice president of product marketing for Datto, says the acquisition came about after his company examined its data networking appliance and realizing that it wasn’t entirely sufficient on its own. He said Open Mesh proved to be a good fit.

“We are both 10-year-old companies, we both work through the same business ups and downs, we are both entirely channel-driven, and the complementary product lines just made sense,” Richards told Channel Partners.

Datto is launching a networking line that Open Mesh Ethernet switching and access-point technologies will complement. Richards calls it the first true solution that allows MSPs to efficiently deliver managed networking services to their customers.{ad}

“It allows us to move from offering simply the data-networking appliance to offering managed networking service capabilities for our channel partners,” he said.

Portland, Oregon-based Open Mesh historically has targeted the SMB market, and through the channel. The acquisition doesn’t mean its partner program will be replaced.

“What Datto adds to that is a more robust channel program that adds 24/7 support [and] extended warranty,” said Ryan Detwiller, general manager for Open Mesh.

Open Mesh, which currently has 28 employees, will operate as a Datto company.

“It’s essentially exactly the same as it exists today, and partners continue to be able to work with OpenMesh exactly as they have. The only change is that there is another option for OpenMesh partners to acquire the technology through the Datto networking brand, which gives them a few additional features,” Richards said.

Datto did not disclose the terms of the transaction.

Datto CEO Austin McChord said the acquisition fits with Datto’s plans to expand its offerings, starting with networking.                                                              

“Companies simply can’t afford downtime,” McChord said. “Our acquisition of Open Mesh and our expanded Datto Networking line gives our MSP partners even more opportunity to provide value to their customers.”