Datto (NYSE:MSP), a global provider of cybersecurity and cloud-based software solutions purpose-built for MSPs, has entered into a definitive agreement for Kaseya to acquire Datto for $6.2 Billion. Kaseya provides unified IT management and security software for MSPs and SMBs.
“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, Chief Executive Officer (CEO) at Kaseya. “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,” added Mr. Voccola. “We couldn’t be more excited about what lies before us – Kaseya and Datto will be better together to serve our customers.”
The all-cash purchase will be financed by an equity consortium led by Insight Partners, with participation from renowned investors like as TPG Capital and Temasek.
Servers, VMs, Cloud Applications
Kaseya provides “best-in-class” technology to help businesses manage, secure, and backup their IT infrastructure. Kaseya’s IT management solutions include brands such as Kaseya, IT Glue, RapidFire Tools, ID Agent, Spanning Cloud Apps, RocketCyber, Graphus, TruMethods, and Unitrends. Headquartered in Miami, Florida, Kaseya is privately held with a presence in over 20 countries.
MSPs may gain cyber resilience, efficiency, and growth with Datto’s Unified Continuity, Networking, Endpoint Management, and Business Management solutions. Datto’s products enable its worldwide ecosystem of MSP partners to service more than one million organizations globally.
Datto’s solutions protect against costly downtime and data loss in servers, virtual machines, cloud applications, as well as everywhere data lives, from proactive dynamic detection and prevention to quick, flexible recovery after cyber disasters. Headquartered in Norwalk, Connecticut, Datto has operations in Australia, Canada, China, Denmark, Germany, Israel, the Netherlands, Singapore, and the United Kingdom.
Completion of the Transaction
The acquisition, which is scheduled to conclude in the second half of 2022, is subject to customary closing conditions, including the receipt of all necessary regulatory approvals. In addition to unanimous board approval, shareholders representing approximately 70 percent of Datto’s issued and outstanding common stock have given their written permission to the transaction.
The deal does not require the approval of any other Datto shareholders. Datto’s common stock will no longer be listed on the New York Stock Exchange after the transaction is completed. Until the deal is completed, the firms will function fully separately.
Advisers
Kaseya’s financial advisor was Evercore, while its legal advisor was Willkie Farr & Gallagher LLP.
Datto’s financial consultants were Qatalyst Partners, while its legal advisors were Kirkland & Ellis LLP. Golub Capital, Blackstone Credit, Ares Management Credit Funds, Owl Rock Capital, Oak Hill Advisors, and Carlyle Global Credit are providing funding for the deal.
Kaseya’s financial legal consultants were Paul, Weiss, Rifkind, Wharton & Garrison LLP. The financial sources were advised by Davis Polk & Wardwell LLP. TPG and Sixth Street were represented by Ropes & Gray LLP. Temasek’s legal counsel was Sullivan & Cromwell LLP.
