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Kaseya acquires Datto for $6.2bn in Insight Partners-funded move

Kaseya and Datto, a global provider of security and cloud-based software solutions purpose-built for MSPs, announced they have entered into a definitive agreement for Kaseya to acquire Datto.

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Tue, 12 Apr 2022
Kaseya acquires Datto for $6.2bn in Insight Partners-funded move
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The all-cash transaction will be funded by an equity consortium led by Insight Partners, with significant investment from TPG and Temasek, and participation from notable investors including Sixth Street.

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. The offer represents a 52 per cent premium to Datto’s unaffected stock price of $23.37 as of 16 March 2022. This deal also represents a 48 per cent premium to the unaffected 30-day volume-weighted average price of Datto stock for the period ending 16 March 2022.

Datto has a legendary commitment to its customers and employees according to Fred Voccola, Kaseyas CEO.

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“This is exciting news for Kaseyas global customers, who can expect to see more functional, innovative and integrated solutions as a result of the purchase.

“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,” Voccola said.

Tim Weller, CEO of Datto, added that combining with Kaseya brings together a broader array of technology products to create additional opportunities for MSPs.

“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.

“I’m encouraged by the continued investment in the rapidly-expanding global MSP community, and this transaction is another important validation of the channel, Weller said.

Michael Triplett, managing director at Insight Partners further explained that the company works with IT infrastructure technology leaders who define and grow their markets through world-class software, data and innovation.

“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, Triplett said.

Approvals and timing

The transaction, which is currently expected to close in the second half of 2022, is subject to the satisfaction of customary closing conditions, including the receipt of applicable regulatory approvals.

In addition to unanimous board approval, shareholders holding in aggregate approximately 70 per cent of the issued and outstanding shares of common stock of Datto have approved the transaction by written consent. No further action by other Datto shareholders is required to approve the transaction. Upon completion of the transaction, Datto’s common stock will no longer be listed on the New York Stock Exchange.

The companies will operate completely independently until the transaction has been finalised, with Datto aiming to publish its first quarter 2022 financial results on or before 10 May 2022.

[Related: New KPMG Australia national cyber lead and 3 cyber partners appointed]

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