Datto Acquisition, Valuation, Funding & Investors

Datto was acquired by Kaseya for $6.2B in April 2022, a 10.0x multiple on $619M of revenue.

See full Datto profile

Datto acquisition price

$6.2B

Acquired by Kaseya · Apr 2022

Datto revenue at acquisition

$619M

Last twelve months · Apr 2022

Datto revenue multiple at acquisition

10.0x

EV/Revenue · Apr 2022

Datto EBITDA multiple at acquisition

35.3x

EV/EBITDA · Apr 2022

Datto Overview

About Datto

Datto is a software and hardware company headquartered in Norwalk, Connecticut that supplies backup, disaster recovery, business continuity, networking and remote management products to managed service providers. It was founded in 2007 by Austin McChord and sells to small and medium-sized businesses almost entirely through a channel of managed service providers. Its offering includes the SIRIS and ALTO backup appliances, SaaS data protection, endpoint backup, remote monitoring and management, professional services automation after the 2017 merger with Autotask, and networking products from the Open Mesh acquisition. Revenue comes mainly from recurring subscriptions. Vista Equity Partners bought Datto in 2017 and listed it on the New York Stock Exchange in 2020, and Kaseya acquired it in 2022.


Founded

2007

HQ

United StatesNorwalk, CT

Website

datto.com

Status

Acquired

Customer focus

B2B

Revenue model

Subscription

Revenue

$100M (Nov 2015)

Valuation

$1B (Nov 2015)

Datto Acquisition

Datto was acquired by Kaseya for $6.2B on 11 April 2022.

The acquisition price implies a 10.0x revenue and 35.3x EBITDA multiple on $619M of revenue.

Before the acquisition Datto had raised $100M across 2 funding rounds.

Kaseya agreed to acquire Datto in April 2022 in an all-cash transaction at $35.50 per share, valuing the company at approximately $6.2 billion. The price represented a 52% premium to Datto's unaffected share price of $23.37 on 16 March 2022. The deal was funded by an equity consortium led by Insight Partners, with significant investment from TPG Capital and Temasek and participation from Sixth Street. Vista Equity Partners, which had acquired Datto in 2017 and taken it public in 2020, held a majority stake and sold into the transaction. Kaseya completed the acquisition on 23 June 2022, after which Datto's stock stopped trading on the New York Stock Exchange. Vista said Datto had more than doubled annual revenue to about $620 million under its ownership, grown headcount from just over 800 to more than 2,000 and reached more than 19,000 managed service provider customers. Datto reported 2021 revenue of about $619 million. Datto, founded in 2007 and based in Norwalk, Connecticut, supplies backup, security and remote management software built for managed service providers.

Datto acquisition details
AcquirerDateTypePriceEV/RevenueEV/EBITDA
11 Apr 2022Strategic M&A$6.2B10.0x35.3x

Sources: sixthstreet.com, vistaequitypartners.com, kaseya.com

Datto Valuation

Datto is currently valued at $1B, based on its Series B in November 2015. Read the announcement ↗

The $75M round was led by TCV.

Datto's valuation has grown 10x from $100M at its Series A in September 2013 to $1B in November 2015, across 2 priced rounds.

Datto valuation by funding round

Revenue multiple
Datto valuation by funding round
DateStageValuationRevenue Multiple
Nov 2015Series B$1B10.0x
Sep 2013Series A$100M-

Datto Revenue

Datto's latest recorded revenue is $100M, as of its Series B in November 2015. At a $1B valuation, that implies a 10.0x revenue multiple.

Datto revenue by funding round

Datto revenue and valuation multiple by funding round
DateRevenue *ValuationRevenue MultipleStage
Nov 2015$100M$1B10.0xSeries B

* Revenue (or ARR) figures are the values recorded alongside each funding round. Typically run-rate revenue at the time of the deal, or a reported LTM (last 12 months) revenue.

Datto Funding History

Datto has raised a total of $100M across 2 funding rounds.

Datto's first fundraising round was a $25M Series A in September 2013. The most recent completed round was a $75M Series B in November 2015.

Datto funding rounds

Datto funding rounds
DateStageInvestorsRaisedValuationDeal Summary
Nov 2015Series BTCV (lead)$75M$1BTechnology Crossover Ventures led a $75 million Series B investment in Datto, announced on 17 November 2015, with TCV supplying the entire round. Press reports put the valuation at about $1 billion, which made Datto a so-called unicorn, and the round brought total funding to just over $100 million after the $25 million Series A from General Catalyst in 2013. TCV general partner Ted Coons joined the board, together with Patrick Gray of Civitas Solutions and Ursula Burns, chairman and chief executive of Xerox. Datto said it was already profitable and would use the capital for geographic expansion into markets including Australia, New Zealand, Europe, the Middle East and Africa, and for product innovation. Founder and chief executive Austin McChord said the company would bring in more than $100 million of revenue in 2015, about four times its 2012 level, and the company employed 550 people. Datto, founded in 2007 and based in Norwalk, Connecticut, sells backup, disaster recovery and business continuity products to small and medium-sized businesses through managed service providers.
Sep 2013Series AGeneral Catalyst (lead)$25M$100MGeneral Catalyst Partners led a $25 million growth equity investment in Datto in 2013. It was the first outside funding for the company since its founding in 2007. Datto said the proceeds would support international expansion, new product development and enhanced services for existing customers, and Steve Herrod, a former VMware chief technology officer and General Catalyst managing director, and Paul Sagan, executive vice chairman of Akamai, joined the board. Datto's valuation at the round was reported at about $100 million. The company had appeared on the Inc. 500 list in 2012 and 2013, the latter recognising a fourth consecutive year of annual growth of about 300%, and reported revenue of about $35 million in 2014. Datto is a Norwalk, Connecticut-based provider of hardware and cloud-based backup, disaster recovery and business continuity products sold to small and medium-sized businesses through managed service providers. It was founded in 2007 by Austin McChord, who served as chief executive. The round broadened its product portfolio and supported the build-out of its channel of managed service providers.

Who has invested in Datto?

2 investors have backed Datto across its funding rounds, including General Catalyst and TCV.

Lead investors include TCV and General Catalyst.


Datto Investors

Investors in Datto by funding rounds participated
InvestorHQRoundsRoleFirst check

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Acquisitions by Datto

Datto has acquired 5 companies to date.

Last acquisition by Datto was on January 20th 2022. Datto acquired Infocyte for $44M.


Latest Acquisitions by Datto

Infocyte
BitDam
Gluh
Open-Mesh
Description
Infocyte is an Austin-based cybersecurity firm delivering managed detection and response services via its HUNT platform. The solution performs forensic analysis on endpoints to uncover advanced persistent threats and ransomware that evade traditional antivirus. Acquired by CrowdStrike in 2018, Infocyte previously served U.S. government agencies and Fortune 500 enterprises, reducing mean time to detect from weeks to hours using memory forensics and behavioral analytics.
BitDam is a Tel Aviv-headquartered cybersecurity firm preventing content-borne threats in email, web, and collaboration tools. Its proactive engine detonates attachments in cloud sandboxes, blocking ransomware like Ryuk and zero-days pre-delivery. Deployed by Fortune 500 firms, it integrates with Microsoft 365 and Proofpoint.
Gluh Pty Ltd is a Melbourne-based procurement platform for managed service providers that streamlines IT hardware and service ordering in real time. The marketplace connects MSPs with distributors like Synnex and Ingram Micro for servers, laptops, networking gear, and cloud subscriptions from Dell, Cisco, and Microsoft. Founded in 2021, Gluh processes quotes, approvals, and deliveries through a single dashboard, reducing procurement time by integrating vendor catalogs and compliance checks. It operates across Australia, supporting SMB clients with volume pricing and financing options.
Open-Mesh is a provider of cloud-managed wireless mesh networking systems for seamless Wi-Fi coverage in hotels, offices, apartments, and public spaces. Acquired by Datto in 2018 and now part of Kaseya, its plug-and-play access points support large-scale deployments worldwide.
HQ CountryUnited StatesIsraelAustraliaUnited States
HQ City
Austin, TX
Tel Aviv
Melbourne
Portland, OR
Deal Date20 Jan 202210 Mar 202116 Jul 202031 Jan 2017
Valuation$44M$46M$4Mundisclosed
EV/Revenue
EV/EBITDA

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Datto Competitors

Datto competitors include listed companies like CommVault Systems, Dynatrace, Datadog and Open Text, and private ones like Fivetran and Collibra.

Public and private companies comparable to Datto
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
CommVault SystemsUnited StatesUnited StatesPublicly listed$1.2B$84M$6.8B5.4x
DynatraceUnited StatesUnited StatesPublicly listed$2B$276M$17B7.2x
DatadogUnited StatesUnited StatesPublicly listed$3.4B($588K)$84B18.8x
Open TextCanadaCanadaPublicly listed$5.2B$1.8B$6.4B2.2x
FivetranUnited StatesSan Francisco, CAPrivate$125M-$5.6B44.8x
CollibraBelgiumBrusselsPrivate$150M-$5.3B35.0x

Datto Public Comps

Datto is no longer listed, but its public comps include Open Text, CommVault Systems, Oracle Corp Japan, Freshworks, Teradata, Dameng Database, Xunce Technology, Beijing Ultrapower, Elastic and Business-intelligence.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Open Text$5.2B$1.8B2.2x2.2x6.5x6.3x
CommVault Systems$1.2B$84M5.7x5.4x80.3x24.9x
Oracle Corp Japan$1.8B$581M4.3x4.2x13.5x13.0x
Freshworks$839M$41M3.8x3.4x78.4x13.2x
Teradata$1.7B$285M1.7x1.7x10.1x6.3x
Dameng Database$196M$84M12.1x9.6x28.2x21.1x
Xunce Technology$193M($16M)12.1x6.9x(149.3x)145.0x
Beijing Ultrapower$875M$166M2.1x1.9x11.3x10.8x

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Common questions about Datto

When was Datto founded?Datto was founded in 2007.
Where is Datto headquartered?Datto is headquartered in Norwalk, CT, United States.
Is Datto publicly listed?No, Datto was acquired by Kaseya in April 2022.
Who acquired Datto?Datto was acquired by Kaseya in April 2022.
How much was Datto acquired for?Datto was acquired for $6.2B in April 2022, a 10.0x revenue multiple.
What is Datto's valuation?Datto was last valued at $1B in its Series B in November 2015.
How much funding has Datto raised?Datto has raised $100M across 2 funding rounds.
What was Datto's last funding round?Datto's last funding round was a $75M Series B in November 2015, led by TCV.
Who are Datto's investors?Datto's investors include General Catalyst and TCV.
What is Datto's revenue?Datto's latest recorded revenue is $100M (November 2015).
What is Datto's revenue multiple?Datto's latest valuation implies a 10.0x revenue multiple ($1B valuation on $100M of revenue).
Which companies are comparable to Datto?Companies comparable to Datto include CommVault Systems, Dynatrace, Datadog, Open Text, Fivetran and Collibra.
How many companies has Datto acquired?Datto has acquired 5 companies, including Infocyte, BitDam, Gluh, Open-Mesh and Backupify.
What was the largest acquisition by Datto?The $46M acquisition of BitDam in March 2021 is the largest acquisition Datto has made to date.

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