Datto Goes Private as Its Acquisition by Kaseya Is Finalized

Kaseya's $6.2 billion acquisition of Datto, in the works for two years, is now complete, taking Datto from a publicly traded company to a private one.

According to an announcement Thursday about the finalized sale, Datto, though now part of Kaseya, "will continue to operate as an autonomous brand" out of its Norwalk, Conn., office. Customers shouldn't expect any service or support interruptions for their Datto products, the companies indicated.

Kaseya CEO Fred Voccola assured customers that he intends to keep Datto's identity and core products intact, in keeping with Kaseya's acquisition history.

"I want to reiterate -- we bought Datto because we think they're awesome -- their world-class products, highly-regarded brand, innovative culture and amazing people -- we have no intention of messing up any of that," Voccola said in a prepared statement. "We will build on what they created so in the end, MSPs will get the maximum value from their solutions at an affordable price."

Both Kaseya and Datto are major providers of software for managed services providers (MSPs), with Kaseya offering various network monitoring automation solutions and Datto offering network continuity and backup/recovery products.

The two companies positioned the deal as a boon for their respective channel partners, promising cost savings for some new purchases of Datto products almost immediately. Kaseya says it is lowering the price of Datto products by an average of 10 percent, though it clarified that "some products' list prices will come down more than that, while others might remain the same."

The Datto RMM and Datto PSA products are examples of products whose prices will be reduced, according to an FAQ, while its networking products will keep their current prices because they are "already priced right."

"Datto has always been committed to building great technology and creating a culture where its MSPs customers always come first -- and as part of Kaseya, we will be able to do this bigger, better, and at lower cost to the MSP," said Rob Rae, senior vice president of business development at Datto.

The two companies plan to significanly integrate their core products within a short window. All of the planned "commercial integrations" are expected to be finished in four months, with 17 "workflow integrations" happening within 30 days. The companies have also begun merging their account management teams.

"As we promised when we announced our intent to buy Datto, customers are going to see investment in innovation and integrations go up and prices come down," Voccola said. "We are increasing our technical investment in our products to ensure that every one of them will be supported and integrated, with enhanced functionality."

About the Author

Gladys Rama (@GladysRama3) is the editorial director of Converge360.