Kaseya Acquired Datto
Kaseya, a premier provider of unified IT management and security software for managed service providers (MSPs) and small to medium-sized businesses (SMBs), and Datto (NYSE:MSP), a leading global provider of security and cloud-based software solutions purpose-built for MSPs, announced today that they have entered into a definitive agreement for Kaseya to acquire Datto. The all-cash transactionwill be funded by an equity consortium led by Insight Partners, with significant investment from TPG Capital and Temasek, and participation from notable investors including Sixth Street.
For its entire fiscal year 2021, Datto generated $619 million in revenue, up 19 percent year over year. Datto reported net income of $51 million, which represented a 130 percent increase compared to 2020.
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.
At first glance, Kaseya and Datto are best known for RMM (remote monitoring and management), PSA (professional services automation) and data protection technologies designed for MSPs. Those tools and technologies help MSPs to automate their own businesses, while remotely managing and protecting SMB customer networks and applications. Datto has enterrpise business continuity backup, Datto SaaS Protection (Microsoft 365 Backup) and Datto SaaS Defense (Microsoft 365 Advanced Threat Protection). Kaseya has IT Documentation (IT Glue)
Below is the list of Kaseya acquistions from 2010 to the present day.
2010-2014
- Nov 4, 2010 – ObjAcct acquired by Kaseya
- May 2, 2011 – Intellipool acquired by Kaseya
- Jun 25, 2013 – Zyrion Inc acquired by Kaseya
- Jul 1, 2013 – Rover Apps acquired by Kaseya
2015-2019
- Feb 6, 2016 – Vorex acquired by Kaseya
- May 9, 2017 – Unigma acquired by Kaseya
- May 3, 2018 – Unitrends acquired by Kaseya
- Sep 5, 2018 – RapidFire Tools acquired by Kaseya
- Oct 1, 2018 – Spanning Cloud Apps acquired by Kaseya
- Dec 19, 2018 – IT Glue acquired by Kaseya
- May 6, 2019 – ID Agent acquired by Kaseya
2020-2022
- Aug 24, 2020 – Graphus acquired by Kaseya
- Feb 23, 2021 – RocketCyber acquired by Kaseya
- Apr 11, 2022 – Datto acquired by Kaseya
MSP Compeition in Brief
According to LinkedIn, headcount figures for each competing company as of April 11, 2022, were roughly:
- Datto – 2053 employees
- Kaseya – 1752 employees
- ConnectWise – 2257 employees
- N-able – 1132 employees
The other smaller rivals include NinjaOne, Atera, SuperOps.ai and Syncro MSP.
Kaseya Acquired Datto: MSP Market Reach, Growth
Why did Kaseya want to acquire Datto? The short answer involves MSP market reach. Indeed, Datto as of the end of 2021:
- Served more than 18,500 MSP partners — a net increase of 1,500 (up about 9%) from the previous year.
- Generated about $35,600 of ARR (annual recurring revenue) per MSP, up about 11% from the previous year.
- Supported 1,400 MSPs that spend at least $100,000 in ARR with Datto, up 27% from December 2020.
About Kaseya
Kaseya is a premier provider of unified IT management and security software. for managed service providers (MSPs) and small to medium-sized businesses (SMBS). Through its customer-centric approach, Kaseya delivers best in breed technologies that allow organizations to efficiently manage, secure, and backup IT. Kaseya offers a broad array of IT management solutions, including well-known names: Kaseya, IT Glue, RapidFire Tools, Spanning Cloud Apps, IT Glue, ID Agent, Graphus, RocketCyber, TruMethods and Unitrends. These solutions empower businesses to command all of IT centrally; easily manage remote and distributed environments; simplify backup and disaster recovery; safeguard against cybersecurity attacks; effectively manage compliance and network assets; streamline IT documentation and automate across IT management functions. Headquartered in Miami, Florida, Kaseya is privately held with a presence in over 20 countries. To learn more, visit www.kaseya.com.
About Datto
As a leading global provider of security and cloud-based software solutions purpose-built for Managed Service Providers (MSPs), Datto believes there is no limit to what small and medium businesses (SMBs) can achieve with the right technology. Datto’s proven Unified Continuity, Networking, Endpoint Management, and Business Management solutions drive cyber resilience, efficiency, and growth for MSPs. Datto’s solutions help its global ecosystem of MSP partners serve over one million businesses around the world. From proactive dynamic detection and prevention to fast, flexible recovery from cyber incidents, Datto’s solutions defend against costly downtime and data loss in servers, virtual machines, cloud applications, or anywhere data resides. Since its founding in 2007, Datto has won numerous awards for its product excellence, superior technical support, rapid growth, and for fostering an outstanding workplace. With headquarters in Norwalk, Connecticut, Datto has global offices in Australia, Canada, China, Denmark, Germany, Israel, the Netherlands, Singapore, and the United Kingdom. Learn more at www.datto.com.
About Insight Partners
Insight Partners is a leading global venture capital and private equity firm investing in high-growth technology and software ScaleUp companies that are driving transformative change in their industries. Founded in 1995, Insight Partners has invested in more than 400 companies worldwide and has raised through a series of funds more than $30 billion in capital commitments. Insight’s mission is to find, fund, and work successfully with visionary executives, providing them with practical, hands-on software expertise to foster long-term success. Across its people and its portfolio, Insight encourages a culture around a belief that ScaleUp companies and growth create opportunity for all. For more information on Insight and all its investments, visit www.insightpartners.com or follow us on Twitter@insightpartners.
About TPG
TPG is a leading global alternative asset management firm founded in San Francisco in 1992 with $114 billion of assets under management and investment and operational teams in 12 offices globally. TPG invests across five multi-product platforms: Capital, Growth, Impact, Real Estate, and Market Solutions and our unique strategy is driven by collaboration, innovation, and inclusion. Our teams combine deep product and sector experience with broad capabilities and expertise to develop differentiated insights and add value for our fund investors, portfolio companies, management teams, and communities. For more information, visit www.tpg.com or @TPG on Twitter.
About Temasek
Temasek is a global investment company with a net portfolio value of US$283 billion (S$381 billion) as at 31 March 2021. Headquartered in Singapore, it has 13 offices in 9 countries around the world. The Temasek Charter defines Temasek’s three roles as an Investor, Institution and Steward, which shape its ethos to do well, do right, and do good. As a provider of catalytic capital, it seeks to enable solutions to key global challenges. With sustainability at the core of all Temasek does, it actively seeks sustainable solutions to address present and future challenges, as it captures investible opportunities to bring about a sustainable future for all. For more information on Temasek, please visit www.temasek.com.sg.
About Sixth Street
Founded in 2009, Sixth Street is a global investment firm with over $60 billion in assets under management. The firm uses its long-term flexible capital, data-enabled capabilities, and One Team culture to develop themes and offer solutions to companies across all stages of growth. Sixth Street has more than 350 team members including over 180 investment professionals operating around the world. For more information, visit our website or follow us on LinkedIn or Twitter @SixthStreetNews
