Kaseya and Datto have announced that Kaseya will acquire Datto in an all-cash transaction that will offer Datto's shareholders US$35.50 per share.
The companies explain that the all-cash transaction will be funded by an equity consortium led by Insight Partners, with significant investments from TPG and Temasek and participation from investors including Sixth Street.
The terms of the agreement stipulate that Datto stakeholders will receive US$35.50 per share in a transaction worth US$6.2 billion.
Kaseya and Datto add that this offer represents a 52% premium to Datto's unaffected stock price of US$23.37 and a 48% premium to the unaffected 30-day volume-weighted average price of Datto stock for the period ending March 16, 2022.
Kaseya is a unified IT management and security software provider for managed service providers (MSPs) and small to medium-sized businesses (SMBs).
“This is exciting news for Kaseya's global customers, who can expect to see more functional, innovative and integrated solutions as a result of the purchase,” Kaseya CEO Fred Voccola says.
“Datto has a legendary commitment to its customers and employees. The alignment of our missions and focus makes us a natural fit that will help our greatly appreciated customers reach new levels of success.
“Kaseya is known for our outstanding track record of retaining the brands and cultures of the companies we acquire and supercharging product quality. We couldn't be more excited about what lies before us. Kaseya and Datto will be better together to serve our customers.
Datto is focused on ensuring SMB growth and success and provides security and cloud-based software solutions purpose-built for MSPs.
“Datto has always been committed to creating world-class technology for SMBs and delivering it through our global network of MSPs to align our growth with the channel. Combining with Kaseya brings together a broader array of technology products to create additional opportunities for MSPs,” Datto CEO Tim Weller says.
”I'm encouraged by the continued investment in the rapidly-expanding global MSP community, and this transaction is another important validation of the channel.
The transaction is expected to close in the second half of 2022, subject to the satisfaction of customary closing conditions such as receiving applicable regulatory approvals.
The transaction has been unanimously approved by the board and shareholders with approximately 70% of the issued and outstanding shares of common stock of Datto have approved the transaction through written consent.
Furthermore, Datto's common stock will no longer be listed on the New York Stock Exchange once the transaction is complete.
“At Insight Partners, we work with IT infrastructure technology leaders who define and grow their markets through world-class software, data and innovation,” Insight Partners managing director Michael Triplett says.
“We are excited to continue to support Kaseya, an industry-defining IT and security infrastructure management company, as they deepen their support for the industry and enhance the experience of their customers.
The companies note that they will continue to operate entirely independently until the transaction is finalised.