Fred Voccola, CEO, Kaseya

Kaseya collects several hundred MSPs at the this week Connect IT Global 2021 conference in Las Vegas.

So what exactly can MSPs expect from Fred Voccola, CEO of Kaseya, senior executives and key technology partners? Check out the blog below all week for ChannelE2E’s Perspectives, Kaseya News Updates and more.

Here we go…

6. MSP Documentation Software – IT Glue Security: SaaS warnings, an independent software startup led by CEO Jim Lippie, has introduced new security features that allow MSPs to control user behavior related to their instances of. to monitor IT glue. Kaseya owns IT Glue, a popular MSP documentation software platform.

5. Status of the MSP M&A: Voccola will publish the latest statistics and some predictions on MSP M&A. Some of the anecdotes to keep in mind before the event:

  • ChannelE2E has followed around 650 M&A deals so far in 2021.
  • Dozens of private equity firms remain active in the MSP market, with more being added every month.
  • According to our background discussions with MSPs and private equity firms, valuations have risen from a norm of around 5 to 8 times EBITDA to an all-time high. ChannelE2E are aware of two major M&A deals this year that had valuations of 18X EBITDA or higher.

However, ChannelE2E does not believe that such high MSP M&A ratings can continue. At some point – as interest rates rise – the cost of borrowing to fund M&A deals will also rise – forcing buyers to come up with offers that are more in line with historical norms. The wildcard? Nobody knows when this transition to valuation normality will occur or whether the MSP market will suffer some kind of dramatic valuation correction along the way …

… These are our thoughts. We will ask Voccola about his thoughts and perspectives when we talk.

Jason Manar, CISO, Kaseya

4. Kaseya hires CISO: Kaseya has hired FBI veteran Jason Manar as CISO. The discontinuation comes after Kaseya suffered a ransomware attack in July 2021 (see point 3 below). Manar was most recently Assistant Special Agent in Charge for the FBI, overseeing all cyber, espionage, intelligence, and voice utilities for the San Diego office. Manar will oversee information security and compliance for Kaseya.

3. After the ransomware attack – Key takeaways ?: the REvil ransomware attack against Kaseya VSA In July 2021, the headlines certainly dominated the middle of the year. The attack spread to around 50 MSPs and 1,500 downstream customers. As the chatter about the attack died down, news spread that the FBI had been working on the decryption key for a few weeks – a finding that caused even worse injuries for some MSPs.

Dana Liedholm, Senior Vice President, Corporate Marketing, Kaseya

Even so, Kaseya operated largely effective crisis communications during the attack and its aftermath. While Voccola spoke to senior officials from the US government and the major business press, Senior VP Dana Liedholm remained both proactive and responsive to industry media throughout the recovery process.

Fast forward to the present and ChannelE2E miracle:

  • What were Kaseya’s key takeaways from the attack and the resulting investigation?
  • Did the company adjust its software development processes after the attack?
  • In addition to hiring Jason Manar as CISO (see point 4 above), has the company adjusted the organization of the management team, reporting structures and / or responsibilities to take into account cybersecurity, information security and risk reduction?

We’ll be looking for answers to those questions this week.

2. M&A Speculation – Will the Big Four ever be the Big Three ?: In the MSP software market, the most common direct competition from Kaseya is ConnectWise, Datto and N-capable. From time to time rumors surfaced that the Big Four could become the Big Three due to a possible M&A deal involving two of the companies. But which two – and when? (Side note: we recognize players like Atera, barracuda, NinjaRMM, Syncro and, have also gained momentum in the market, among other things.)

I am generally skeptical of the Big Four / Big Three M&A speculation as the resulting combination would likely trigger product overlap. Nonetheless, I will ask Voccola for his thoughts on whether or how the industry could possibly consolidate.

1. What is Kaseya’s financial plan (possible IPO?): Voccola said in September 2020 Kaseya is said to be a public company until about September 2021. Fast forward to today and Kaseya is still owned by a private equity firm Insight partner – which Kaseya acquired in 2013. TPG joined as a Kaseya investor in 2019.

Fast forward to today. Has the ransomware attack affected Kaseya’s financial performance? and / or IPO plan; or a timing related to it? The short answer I believe includes:

  • Although RMM sales came under pressure immediately after the attack, Kaseya has a diverse business that performed well in the third quarter of 2021, sources close to the company’s ChannelE2E report.
  • Rather than going public, sources close to the company have long expected Kaseya to pursue a potential recapitalization in the private equity market sometime by Q1 2022. That was my own speculation too.

Granted, my financial speculation above is unconfirmed. But we will endeavor to get some updates on Kaseya’s financial plan from Voccola this week.

More conference news: Got any news from the Kaseya Connect IT conference? Email me the details and we will possibly mention them in the blog above.

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