The IT management software company Kaseya has announced that it has entered a definitive agreement to acquire the disaster recovery (opens in new tab) and cloud backup (opens in new tab) provider Datto which it will take private once the acquisition is complete.
The all-cash transaction will be funded by an equity consortium led by Insight Partners (opens in new tab) along with significant investment from TPU and Temasek and participation from other investors including the global investment firm Sixth Street.
Kaseya CEO Fred Vocolla explained in a press release (opens in new tab) announcing the deal that the Datto brand and its culture will remain intact, saying:
“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. 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. We couldn’t be more excited about what lies before us - Kaseya and Datto will be better together to serve our customers.”
Creating additional opportunities for MSPs
Under the terms of the agreement, Datto (opens in new tab) stockholders will receive $35.50 per share as part of Kaseya’s efforts to take the company private.
Not only does this price value Datto at approximately $6.2bn but it also represents a 52 percent premium to the company’s unaffected stock price of $23.37 as of March 16 of this year. At the same time, the deal represents a 48 percent premium to the unaffected 30 day volume weighted average price of Datto stock for the period ending on this date.
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Datto CEO Tim Weller explained in a statement that combining its array of technology products with those of Kaseya will create additional opportunities for Managed Service Providers (MSPs (opens in new tab)).
The acquisition is expected to close during the second half of 2022 following customary closing conditions and regulatory approval. Going forward, both companies will continue to operate completely independently until the transaction has been finalized.