Kaseya Rocks Industry with $6.2 Billion Datto Acquisition

Kaseya announced on Monday the acquisition of Datto in an all-cash transaction valued at $6.2 billion. It is funded through an equity consortium led by Insight Partners. This is with significant investment from TPG and Temasek, and participation from notable investors including Sixth Street.

This is a big moment for MSPs. This acquisition, which comes three years after Thoma Bravo spent $1.5 billion on ConnectWise, is another big sign of how valuable this industry is proving to be. 

Terms of the Deal 

Under the terms of the agreement, Datto stockholders will receive $35.50 per share in a transaction that values Datto at approximately $6.2 billion. 

Kaseya’s Fred Voccola

“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. Kaseya is known for our outstanding track record of retaining the brands and cultures of the companies we acquire and supercharging product quality. We couldn’t be more excited about what lies before us — Kaseya and Datto will be better together to serve our customers.”

Combining 2 Giants

Datto’s Tim Weller

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

“At Insight Partners, we work with IT infrastructure technology leaders who define and grow their markets through world-class software, data and innovation,” said Michael Triplett, managing director at Insight Partners. “We are excited to continue to support Kaseya, an industry-defining IT and security infrastructure management company, as they deepen their support for the industry and enhance the experience of their customers.”

It will be interesting to see how the details of this deal unfolds. We, like the rest of the industry, will surely be on the edge of their seats.