Kaseyabacked by a private equity firm Insight Partnershas completed the date Acquisition for $6.2 billion, essentially privatizing the privacy technology company and creating the MSP software industry’s largest deal.
The combined company, known as Kaseya, will provide MSPs and midsize IT departments with tools for IT management, automation, data protection, and cybersecurity. Thousands of joint Kaseya-Datto MSPs could potentially benefit from improved product integrations, but some MSPs are concerned about product overlap and potentially rising prices.
Kaseya CEO Fred Voccola addressed these concerns in a prepared statement:
“As we promised when we announced our intention to buy Datto, customers will watch as investment in innovation and integration increases and prices fall. We are increasing our technical investment in our products to ensure each and every one of them is supported and integrated with enhanced functionality. The end goal is to be the cheapest and best option on the market for our amazing customers.”
Kaseya explains Datto pricing and integrations
Among the points of evidence offered by Voccola and Kaseya:
- At least 17 workflow integrations between Datto products and the Kaseya platform are planned within the first month;
- 100% of commercial integrations expected to be completed within 120 days;
- list prices for all Datto technologies are reduced by (average) 10% or more on new purchases; and
- List prices of some products will decrease more, while others could stay the same.
Still, it’s important to note that list prices and actual prices in the MSP marketplace can differ widely – especially when deals involve MSPs who buy and negotiate in bulk, or MSPs who commit from one software vendor to another switch.
Datto’s Rob Rae: Are you staying here?
Rob Rae, Datto’s senior vice president of business development, was quoted in the press release — an important move to reassure Datto’s MSP partners. Datto CEO Tim Weller was not quoted in the M&A announcement.
“This is absolutely the best thing that could have happened to Datto, our employees and most importantly our MSP partners. Datto has always been committed to building great technology and creating a culture that always puts its MSPs’ customers first – and as part of Kaseya, we’ll be able to do it bigger, better, and at a lower cost to do for the MSP.”
We’re checking to see if Kaseya and Rae have a post-deal employment contract.
Kaseya-Datto: Growing in competition
Kaseya and Datto both grew up leading up to the M&A deal. And it’s a safe bet that Kaseya, backed by private equity firm Insight Partners, plans to drive additional growth post-deal. Nevertheless, competition and rivals pass ConnectWise, N-capable, NinjaOne and various startups are likely to be intense in the coming months.
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