Data protection solutions provider Datto has announced it is to be acquired by Vista Equity Partners, with the company being merged with IT business management provider Autotask, another horse in Vista’s stable.
The move is a large one in the managed service provider (MSP) space, with the companies in their own words ‘creating the only complete, global IT business management and business continuity platform built exclusively for MSPs.’
Datto offers business continuity, backup and disaster recovery and network continuity services, while Autotask has traditionally focused on endpoint management, remote monitoring and management, alongside providing cloud backup, and CRM and service desk offerings under the banner of professional services automation (PSA).
Mark Banfield, SVP and general manager of international at Autotask, said Vista has been looking for opportunities to expand Autotask’s vision for a unified platform for ‘some time’. “The merger of Autotask and Datto is a natural next step for both companies who can now deliver tremendous value to the IT channel by providing technology providers with services to increase recurring revenue, grow and expand – all from one company,” he told CloudTech.
Andrew Stuart, managing director of Datto’s EMEA arm, added the company previously had suitors but was unwilling to sell until they found a good fit. “When it came to Vista, they shared our vision to create something meaningful in the MSP market,” said Stuart. “They were already working with Autotask and understood the potential for future growth and that we could make a serious impact in the IT space by combining Datto and Autotask.
“Things went fairly quickly once we realised that Vista could really take Datto to the next level and essentially create the largest vendor in the MSP industry.”
According to the press materials, a combined management team will lead the merged entity, with Austin McChord, Datto founder and chief executive officer, leading the company. Mark Cattini, president and CEO of Autotask, will be a strategic advisor to the board of directors. Regarding future product strategy, it is still early days but according to Stuart, while there will ‘eventually’ be a joint product roadmap it is business as usual for the time being.
The transaction is expected to close in the fourth quarter of 2017. Financial terms of the deal were not disclosed.
Interested in hearing industry leaders discuss subjects like this and sharing their experiences and use-cases? Attend the Cyber Security & Cloud Expo World Series with upcoming events in Silicon Valley, London and Amsterdam to learn more.
