Autotask and Datto to merge in MSP mega play

Autotask and Datto to merge in MSP mega play

Merger combines back-up and disaster recovery solutions with IT service management capabilities

Autotask and Datto have unveiled plans to join forces, with the mega merger set to shake-up the managed services market across the channel.

Terms of the agreement will see Datto be acquired by Vista Equity Partners, an investment firm focused on software, data and technology-enabled businesses.

As a result, the vendor will now come under the same roof as Autotask, which has been owned by Vista since June 2014, combining back-up and disaster recovery solutions with IT service management capabilities.

“We're thrilled to bring together the complementary skills and world-class service of two global market leaders, Autotask and Datto,” Vista Equity Partners co-founder and president Brian Sheth said.

“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 managed service providers [MSPs] worldwide.”

According to Sheth, Vista’s simultaneous acquisition of Datto and merger with Autotask immediately provides “significant opportunities” for channel partners.

Specifically, the combination of both product sets will target MSPs and IT service providers across the market, offering capabilities such as service delivery, professional services automation, back-up and disaster recovery, networking continuity, file sync and share, and remote monitoring and management.

From a logistics perspective, the joint entity will have approximately 1,300 employees with offices in nine countries, bolstered by 13,000 customers servicing more than 500,000 SMBs in 125 countries worldwide.

“We’re honoured to be joining forces with both the world’s premier software investor, Vista Equity Partners, and with Autotask, the provider of the most essential tools for the MSP space,” Datto founder and CEO Austin McChord added.

“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.”

In developing business continuity solutions for over 100,000 companies around the world, Datto’s suite of services includes back-up and disaster recovery, cloud-to-cloud backup services for software-as-a-service (SaaS) applications and network continuity services.

A combined management team will lead the merged entity with McChord as CEO, while Autotask CEO Mark Cattini will work closely as a strategic advisor to the board of directors.

“With the powerful combination of the Autotask Unified PSA-RMM platform and Datto’s industry leading business continuity solutions, together we can now deliver unprecedented innovation and unmatched levels of value and service to our customers and partners worldwide,” Cattini added.

“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."

The transaction, which is subject to customary closing conditions and regulatory approvals is expected to close in the fourth quarter of 2017, with terms of the deal not disclosed.

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