Datto, a Connecticut-based cybersecurity software provider, is being taken private by the IT security management company Kaseya. The acquisition is an all-cash deal funded by a consortium led by Insight Partners, with a price tag of $6.2 billion. The deal offers $35.50 per share in cash to Datto shareholders, a 52% premium over the company’s March 16th stock price. Kaseya is backed in the deal by Insight Partners and supported by investments from TPG Capital, Sixth Street Partners, and Singapore state investor Temasek.
In the fiscal year 2021, Datto reported revenue of $618.7 million, up more than 19% year-over-year. The company provides security and data backup software to managed service providers (MSPs) for small and medium-sized businesses specializing in disaster recovery. When the merger with Kaseya is completed in mid-2022, it will create a substantially larger MSP than its rivals, such as ConnectWise and N-able.