Software maker Datto to be taken private in US$6.2b deal supported by Temasek

[NEW YORK] Cybersecurity software provider Datto said on Monday (Apr 11) it would be taken private by security software company Kaseya for US$6.2 billion in an all-cash deal funded by a consortium led by private equity firm Insight Partners.

The deal offers US$35.50 per share in cash to Datto shareholders, a nearly 52 per cent premium to the company's closing price on Mar 16 before a media report said the software maker was exploring options, including a sale.

The purchase by Kaseya, an IT management software maker backed by Insight Partners, is also supported by investments from TPG Capital, Sixth Street Partners and Singapore state investor Temasek.

The take-private offer came less than 2 years since Vista Equity-backed Datto went public on the New York Stock Exchange in October 2020 at US$27 per share. Vista Equity was the biggest shareholder of Datto, owning nearly 70 per cent of the company.

Founded in 2007, Datto makes security and cloud-based software for managed service providers for small and medium-sized businesses. Vista Equity acquired Datto in 2017 and merged it with Autotask.

Datto generated US$618.7 million in revenue in the fiscal year 2021, growing 19.3 per cent year over year.

The deal is expected to close in the second half of the year. REUTERS