Sources: Autotask, Datto Set To Merge In Private Equity Deal

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Managed services stalwarts Autotask and Datto are planning to merge, giving channel partners everything from IT service management to backup and disaster recovery under one roof, according to sources.   

The companies will  be joined together under the stewardship of private equity powerhouse Vista Equity Partners, which has owned Autotask since June 2014. Autotask declined to comment, while Datto and Vista Equity Partners didn't immediately responded to requests for comment.

The Datto merger will put Autotask in more direct competition against Boston-based Continuum and Durham, N.C.-based SolarWinds MSP, who are both also heavily focused in the remote management and monitoring (RMM) and backup and disaster recovery (BDR) spaces.

[RELATED: Autotask Execs Aim To Help MSPs Prosper With A Platform That Adds Value, Context To Business Data]

Datto today partners with many of Autotask's top competitors including Tampa, Fla.-based ConnectWise and Kaseya, headquartered in New York and Miami, while Autotask currently works with some of Datto's data protection rivals such as Acronis and StorageCraft.

Austin McChord founded the Norwalk, Conn.-based data protection developer Datto in 2007 when he was just 21 years old, while Mark Cattini has served as Autotask's CEO since December 2010.   

Autotask has expanded well beyond its professional services automation (PSA) roots since Vista bought the company 3.5 years ago. The East Greenbush, N.Y.-based vendor began by expanding into the RMM space in September 2014 with its purchase of Buckinghamshire, U.K.-based CentraStage, which is now known as Autotask Endpoint Management (AEM).

Ten months later, Autotask moved into the file sync and share space with its acquisition of San Jose, Calif.-based Soonr, which was renamed Autotask Workplace (AWP). And in September 2016, Autotask took advantage its own organic investment to add a fully-automated endpoint backup offering to its suite of tools.    

Datto, meanwhile, scored a $1 billion valuation in November 2015 when it received a $75 million Series B investment from Technology Crossover Ventures. The company didn't take any venture capital money until 2013 when it had at last become profitable.

The company said at the time that it planned to use the Series B investment to expand into Australia, New Zealand, Europe, the Middle East, and Africa. Datto also reassured the industry at that juncture that the company was already profitable.

Datto's core offerings include business continuity, managed networking and backup for cloud-based applications such as Office 365. The company in June rolled out flash storage-based appliances, better options for Office 365, and new networking capabilities such as quality of service control.

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