Kaseya Strikes $6.2 Billion Deal With Datto, Promising to Cut Prices

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Kaseya, a maker of IT service and security management software, announced on Thursday that it had completed its $6.2 billion acquisition of cybersecurity firm Datto, promising tight integration between the two companies’ products and lower prices for the customer.

The closing of the transaction marks the third high-profile acquisition for Kaseya in the last 18 months, since the company acquired security threat response company Infocyte in January and threat detection company BitDam in March 2021. A total of 12 acquisitions have been completed by Kaseya under Managing Director Fred Voccola.

The company’s public announcements about the Datto deal highlighted upcoming price cuts — an average of 10% across the board, according to Kaseya. Some products are expected to remain at the same price levels while others will fall significantly more, Kaseya said. Datto will continue to operate as an independent brand, Kaseya added.

Voccola said in the announcement that Kaseya wants to build on Datto’s existing value.

“I want to reiterate – we bought Datto because we think they are AWESOME – their world class products, highly respected brand, innovative culture and amazing people – we have no intention of screwing up any of it,” said he. “[I]In the end MSPs [managed service providers] will get the maximum benefit from their solutions at an affordable price.”

Kaseya also pledged to invest in innovation and integration between the two companies’ product lines, noting that 17 integrations between Datto and Kaseya products are expected within the month and that all commercial integrations will be completed within 120 days.

MSP customers have historically had her doubts on Kaseya’s management of its acquisitions. The company suffered a high-profile ransomware attack in July 2021, which affected thousands of companies signing deals with MSPs worldwide, somewhat damaging its reputation, and MSPs are paying close attention to the deal and its potential ramifications.

It’s not the first time Datto has been in the mergers and acquisitions spotlight — the company’s merger with Autotask in 2017 represented a significant shakeup in the MSP market and was subsequently acquired by investment firm Vista Equity Partners before its October merger was listed on the New York Stock Exchange in 2020.

Copyright © 2022 IDG Communications, Inc.

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