Software maker Datto to be taken private by Kaseya for $6.2 bln

Kaseya logo and binary code seen in this illustration taken, July 5, 2021. REUTERS/Dado Ruvic

April 11 (Reuters) – Cybersecurity software provider Datto (MSP.N) said on Monday it would be taken private by security software company Kaseya for $6.2 billion in an all-cash deal funded by a consortium led by private equity firm Insight Partners.

The deal offers $35.50 per share in cash to Datto shareholders, a nearly 52% premium to the company’s closing price on March 16 before a media report said the software maker was exploring options, including a sale.

The purchase by Kaseya, an IT management software maker backed by Insight Partners, is also supported by investments from TPG Capital , Sixth Street Partners and Singapore state investor Temasek.

The take-private offer came less than two years since Vista Equity-backed Datto went public on the New York Stock Exchange in October 2020 at $27 per share. Vista Equity was the biggest shareholder of Datto, owning nearly 70% of the company.

Founded in 2007, Datto makes security and cloud-based software for managed service providers for small and medium-sized businesses. Vista Equity acquired Datto in 2017 and merged it with Autotask Corp.

Datto generated $618.7 million in revenue in the fiscal year 2021, growing 19.3% year over year.

The deal is expected to close in the second half of the year.

Reporting by Sohini Podder in Bengaluru and Krystal Hu in New York; Editing by Anil D’Silva, Aditya Soni and Leslie Adler

Our Standards: The Thomson Reuters Trust Principles.