Disaster Recovery Service: Datto acquired by Kaseya for $6.2B with help from consortium of investors
- ByStartupStory | April 12, 2022
The disaster recovery service, Datto, has had an interesting history. As a startup,it raised a cool $100 million, including an investment of $75 million in 2015, a significant round for that period. In 2017, Vista Equity purchased the startup, but that wasn’t the end of its story, not by a long shot. Vista instead built up the company and in 2020 took it public.
Today, another twist took place for the journey when a provider of security and management services for internal IT departments and managed servers providers, Kaseya, bought the company for $6.2 billion.
Kaseya is getting a company, with Datto, that provides services related to backup and disaster recovery. Datto enables you in order to download the most recent backup and get going again. Two companies- Fred Voccola, Kaseya’s CEO, have a lot in common, and into Kaseya’s product portfolio the backup and recovery services fit nicely.
Datto acquired by Kaseya for $6.2B Datto shareholders will receive $35.50 per share, under the terms of the deal, which represents a 52% premium on March 16th over the company’s stock price. It’s worth noting, however, on the news, the stock price is soaring today by over 20% and the offer price is getting close to that at $34.60 per share.
Over that kind of dough Kaseya is not forking on its own, however. With help from TPG and Temasek, it’s getting help from a consortium of investment firms that includes Insight Partners. Participation is also seen from Sixth Street and other unnamed investors.
The company announced revenue of $163 million for the quarter, up 18% year over year, in its most recent quarter, the last one Datto will be reporting as a public company. The deal has already been approved by Datto shareholders and the board. The acquisition is expected to close some time in the second half of the year, if it passes regulatory oversight.
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