Datto Acquired by Vista Equity Partners

Datto, Inc. entered into a definitive agreement to be acquired by Vista Equity Partners (Vista), an investment firm focused on software, data and technology-enabled businesses.

The acquisition combines the backup and DR solutions with Vista’s strategic and operational expertise for supporting high-growth technology companies.

Datto develops BC solutions that secure business data for over 100,000 companies around the world. Its suite of services includes backup and DR, cloud-to-cloud backup services for SaaS applications and network continuity services.

Vista’s simultaneous acquisition of Datto and merger with existing Vista portfolio company Autotask Corporation provides opportunities for the IT channel. The combination of Autotask’s market IT management solutions with Datto’s data protection solutions creates a single provider able to meet the needs of MSPs and IT service providers from operations through service delivery, including professional services automation, backup and DR, networking continuity, file sync and share, and remote monitoring and management.

The combined organizations have approximately 1,300 employees with offices in 9 countries. Their nearly 13,000 customers service more than 500,000 SMBs in 125 countries worldwide.

“We’re thrilled to bring together the complementary skills and world-class service of two global market leaders, Autotask and Datto,” said Brian Sheth, co-founder and president Vista. “Over the past three years, we have worked closely with the Autotask team to accelerate growth and expand its unified platform. Bringing Autotask together with Datto’s impressive talent and deep expertise in backup and networking solutions will take us to the next level and deliver extraordinary tools and services to MSPs worldwide.”

“We’re honored to be joining forces with both the world’s premier software investor, Vista, and with Autotask, the provider of the most essential tools for the MSP space,” said Datto’s founder and CEO, Austin McChord. “This unique combination of talent with a track record of success marks a new chapter that will make an even bigger impact for our MSP partners, by delivering an unprecedented set of capabilities for them to serve millions of small businesses in the future.”

“With the powerful combination of the Autotask Unified PSA-RMM platform and Datto’s industry leading BC solutions, together we can now deliver unprecedented innovation and unmatched levels of value and service to our customers and partners worldwide,” said Mark Cattini, president and CEO, Autotask. “This merger marks a natural step in our evolution as we continue to bring more managed service offerings to the channel. We look forward to using our combined scale to do even more to help our customers grow, succeed and increase profitability. We are excited to get going.“

A combined management team will lead the merged entity with Datto founder and McChord as CEO. Cattini will continue to work closely with McChord and the combined team as a strategic advisor to the board of directors.

The transaction, which is subject to customary closing conditions and regulatory approvals is expected to close in the fourth quarter of 2017.

Terms of the deal will not be disclosed.

Datto was advised by Morgan Stanley on the sale.