Datto Acquisition, Valuation, Funding & Investors
Datto was acquired by Kaseya for $6.2B in April 2022, a 10.0x multiple on $619M of revenue.
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
About Datto
Datto is a provider of backup, disaster recovery, and business continuity solutions designed for managed service providers across North America, Europe, and the Asia-Pacific region. Key offerings encompass SIRIS appliances for enterprise data protection in physical and virtual environments, ALTO devices tailored for small business server backups with local virtualization, Datto NAS for multi-site cloud-synced file storage, and Backupify for cloud-to-cloud backups of SaaS platforms such as Google Workspace and Salesforce. Headquartered in Norwalk, Connecticut, the company maintains additional facilities in Germany and the Netherlands while supporting operations in Australia and New Zealand. Kaseya acquired Datto in 2022 following its earlier purchase by Vista Equity Partners in 2017.
Founded
2007
HQ
Norwalk, CTWebsite
Status
Acquired
Customer focus
B2B
Revenue model
Subscription
Revenue
$454M (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.
| Acquirer | Date | Type | Price | EV/Revenue | EV/EBITDA |
|---|---|---|---|---|---|
| 11 Apr 2022 | Strategic M&A | $6.2B | 10.0x | 35.3x |
Datto Valuation
Datto is currently valued at $1B, based on its Series B in November 2015.
The $75M round was led by TCV.
Datto's valuation has grown 8.0x from $125M at its Series A in September 2013 to $1B in November 2015, across 2 priced rounds.
Datto valuation by funding round
Revenue multiple| Date | Stage | Valuation | Revenue Multiple |
|---|---|---|---|
| Nov 2015 | Series B | $1B | 2.2x |
| Sep 2013 | Series A | $125M | - |
Datto Revenue
Datto's latest recorded revenue is $454M, as of its Series B in November 2015. At a $1B valuation, that implies a 2.2x revenue multiple.
Datto revenue by funding round
| Date | Revenue * | Valuation | Revenue Multiple | Stage |
|---|---|---|---|---|
| Nov 2015 | $454M | $1B | 2.2x | Series 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
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Nov 2015 | Series B | TCV (lead) | $75M | $1B | Datto, a Norwalk, Connecticut-based provider of backup, disaster recovery, and business continuity solutions for small to medium-sized businesses (SMBs), raised $75 million in a Series B funding round on November 17, 2015, led solely by Technology Crossover Ventures (TCV). This brought total funding to over $100 million, following a prior $25 million Series A from General Catalyst. The company, founded in 2007, reported being profitable at the time and planned to use the capital for global expansion into markets like Australia, New Zealand, Europe, the Middle East, and Africa, as well as product innovation and potential strategic acquisitions. Datto sells primarily through managed service providers (MSPs), managing over 160 petabytes of data and more than 1 million backups weekly, with around 50,000 customers, 85% in the US, and 550 employees poised to grow to nearly 700. The round valued Datto at a purported $1 billion, earning it unicorn status, as reported by Fortune. TCV's investment was attracted by Datto's strong leadership, well-defined product in a massive SMB market (estimated at 5 million substantial businesses worldwide), and growth potential beyond core disaster recovery, bolstered by its 2014 acquisition of Backupify for cloud-to-cloud backups complementing on-premises solutions for Windows/Linux data. New board additions included TCV's Ted Coons, Civitas Solutions director Patrick Gray, and Xerox CEO Ursula Burns, joining existing members like former Akamai CEO Paul Sagan and General Catalyst's Steve Herrod. Datto competed with players like EMC's Mozy and Carbonite in data protection. |
| Sep 2013 | Series A | General Catalyst (lead) | $25M | $125M | Datto, an international provider of hardware- and cloud-based backup, disaster recovery (BDR), and intelligent business continuity (IBC) solutions, raised $25 million in growth equity financing in 2013 led by General Catalyst Partners. This marked the company's first venture funding since its 2007 founding, used for international expansion, new product development, and enhanced services for existing customers. The round welcomed Steve Herrod (former VMware CTO and General Catalyst managing director) and Paul Sagan (Akamai executive vice chairman) to its board. ChannelE2E reports Datto's valuation at approximately $100 million for this round. Datto demonstrated rapid growth prior to the round, landing on the Inc. 500 list in 2012 and 2013, with the latter recognizing its fourth consecutive year of 300% annual growth. The investment supported broadening its product portfolio and international presence, aligning with founder and CEO Austin McChord's vision to transform cloud-based backup and disaster recovery globally. This 2013 round preceded further funding, including a $75 million investment from Technology Crossover Ventures in 2015 at a $1 billion valuation, establishing Datto as a unicorn while already profitable. Datto later pursued M&A, acquiring Backupify in 2014, and grew significantly, reaching $35 million in revenue by 2014 and culminating in a 2017 acquisition by Vista Equity Partners at an apparent $1.5-1.8 billion valuation, followed by a merger with Autotask. |
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
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
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Start Free TrialAcquisitions 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
| 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 Country | |  |  | | |
| HQ City | Austin, TX | Tel Aviv | Melbourne | Portland, OR | |
| Deal Date | 20 Jan 2022 | 10 Mar 2021 | 16 Jul 2020 | 31 Jan 2017 | |
| Valuation | $44M | $46M | $4M | undisclosed | |
| 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 Cohesity.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| United States | Publicly listed | $1.2B | $84M | $6.2B | 5.0x | |
| United States | Publicly listed | $2B | $276M | $16B | 7.0x | |
| United States | Publicly listed | $3.4B | ($588K) | $85B | 19.4x | |
 Canada | Publicly listed | $5.2B | $1.8B | $5.7B | 2.1x | |
| San Francisco, CA | Private | $125M | - | $5.6B | 44.8x | |
| San Jose, CA | Private | $1.7B | $28M | $7B | 4.1x |
Datto Public Comps
Datto is no longer listed, but its public comps include CommVault Systems, Open Text, Oracle Corp Japan, Xunce Technology, Dameng Database, Freshworks, Elastic, Teradata, Beijing Ultrapower and Business-intelligence.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $1.2B | $84M | 5.2x | 5.0x | 72.9x | 23.2x | |||
| $5.2B | $1.8B | 2.1x | 2.1x | 6.1x | 5.8x | |||
| $1.8B | $589M | 3.9x | 3.9x | 12.1x | 12.2x | |||
| $192M | ($15M) | 21.3x | 13.4x | (264.0x) | 415.8x | |||
| $195M | $84M | 15.3x | 12.5x | 35.5x | 27.6x | |||
| $839M | $41M | 3.2x | 2.9x | 65.7x | 11.3x | |||
| $1.7B | $35M | 4.9x | 4.6x | 244.4x | 25.5x | |||
| $1.7B | $285M | 1.4x | 1.5x | 8.4x | 5.3x | |||
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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 $454M (November 2015). |
| What is Datto's revenue multiple? | Datto's latest valuation implies a 2.2x revenue multiple ($1B valuation on $454M of revenue). |
| Which companies are comparable to Datto? | Companies comparable to Datto include CommVault Systems, Dynatrace, Datadog, Open Text, Fivetran and Cohesity. |
| 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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