Kaseya Buys Datto; Creates MSP Software and Managed Security Giant

Kaseya is acquiring Datto in a $6.2 billion deal that will create a massive provider of MSP software, IT management, data protection, business automation and cybersecurity technologies, ChannelE2E reported.

Here is our associated coverage:

  1. Five Questions that Kaseya-Datto MSPs Want Answered
  2. Kaseya-Datto Rivals Prepare Migration Offers
  3. Kaseya-Datto Parent Insight Partners Dominates Cloud Backup Market, Also Owns Veeam

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.

Kaseya Acquires Datto: Cybersecurity Software Services for MSPs

Take a closer look, and both Kaseya and Datto have growing footprints in the cybersecurity and cyber resilience markets.

Key Datto moves include acquiring Infocyte for Endpoint Detection and Response (EDR) technologies and Managed Detection and Response (MDR) services. It sounds like a promising acquisition, though Datto will face intense competition from far larger and rapidly growing EDR and MDR software and service providers — including a newly minted unicorn named eSentire.

Meanwhile, Kaseya has been in growth mode ahead of the Datto M&A announcement. Indeed, Kaseya grew 25 percent in 2021 vs. 2020, according to a January 2022 statement from the company. Key moves from 2021 include acquiring managed SOC (security operations center) RocketCyber and MSP coaching firm TruMethods.

Kaseya-Datto Merger: Next Moves

The Kaseya-Datto M&A deal is expected to close in the second half of 2022. Datto will go private under terms of the deal, the parties indicated.

Among the additional dates that MSPs will be watching: The Kaseya ConnectIT Global 2022 conference is set for June, and DattoCon 2022 is set for September.

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2 Comments

Comments

    Samuel Harrison:

    I read the story about the Datto Aquisition today.

    I’ve read many of the others too.

    I’m surprised that no one wrote how despised Kaseya is because of their predatory practices. From everything I’m seeing in MSP and Datto forums so far, this merger is going to cause a big exodus from Datto.

    I believe that there is a much bigger story about Kaseya’s awful business practices and the revolt that this acquisition will foment.

    Joe Panettieri:

    Samuel: Thank you for your note. As our ChannelE2E coverage points out, some MSPs running Kaseya and Datto may seek out alternative MSP software and technology solutions. Also, MSPs are asking these 5 questions about the Kaseya-Datto deal.

    Forums certainly trigger lively debates and important conversations. But I believe MSP platform migrations involve far more than an MSP being upset about an M&A deal. Key considerations include:

    1. Quality and breadth of product;
    2. onboarding and 24×7 support;
    3. vendor track record;
    4. pricing history;
    5. subscription flexibility (ability to quickly scale up, scale down and even cancel contracts); and
    6. ability to deliver on product roadmaps.

    All that said, we’ll continue to track this story closely on both ChannelE2E and MSSP Alert.

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