Kaseya, backed by private equity firm Insight Partners, has completed a $ 6.2 billion acquisition of Datto, essentially taking over the data protection technology company and creating the largest business in the MSP software industry.
The combined company, known as Kaseya, provides IT management, automation, data protection and cybersecurity tools to MSPs and Midmarket IT departments. Thousands of Kaseya-Datto MSPs could potentially benefit from improved product integration, but some MSPs are concerned about product overlap and potentially rising prices.
In a statement prepared by Kaseya CEO Fred Vokola addresses those concerns:
“As we promised when we announced our intention to buy Datuko, customers will see investment in innovations and consolidations will increase and prices will decrease. Is the goal.
Case statements on Database Pricing and Integration
In the proofs given by Vokola and Kassea:
- At least 17 workflow integrations are planned within the first month between Datto products and the Kaseya platform;
- 100% commercial integrations are expected to be completed in 120 days;
- The list price of all Dato technology on new purchases is reduced by 10% (average) or more; And
- List prices for some products will be much lower than that, while others may be the same.
Still, it’s important to note that listing prices and actual prices in the MSP market can vary dramatically – especially when deals involve MSPs and when buying and negotiating bulk or MSPs vow to switch from one software provider to another.
Datos Rob Ray: Stuck?
Rob Ray, senior VP of business development, said in a press release – it was designed to make Dutto’s MSP partner easier. Dutto CEO Tim Weller was not mentioned in the M&A announcement.
“This is the best thing that can happen to our employees and most importantly to our MSP partners.
We are checking to see if Kaseya and Ray have reached a post-employment agreement.
Kassea-Dutto: Growing Between Competition
Kassea and Dattto were both growing before the M&A deal. And this is a safe bet Kaseya, backed by private equity firm Insight Partners, plans to spur additional growth after the deal. Still, the competition and rivalry of ConnectWise, N-able, NinjaOne and various other startups will intensify in the coming months.