Datto, Autotask Execs On Why The Two Companies Can Combine And Create More Opportunities For MSPs

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The planned merger of IT service management vendor Autotask and data protection and networking vendor Datto is a testament to how strong the managed services provider business has grown and its prospects for future growth, said executives of the two companies.

Vista Equity Partners, the San Francisco-based investment firm which has owned East Greenbush, N.Y.-based Autotask since 2014, on Thursday unveiled the acquisition of Norwalk, Conn.-based Datto with an eye towards merging the two into a single MSP powerhouse.

Since both companies are privately held, no financial details of the transaction were provided. The acquisition and merger are expected to be finalized by year-end.

[Related: CRN Exclusive: Datto CEO McChord On Expanding Into Networking And Security To Build Opportunities For MSPs]

The final name of the combined company has yet to be determined. However, it will be led by Datto CEO Austin McCord.

The two companies are successful and respected providers of technology to MSPs, said Patrick Burns, vice president of products at Autotask.

"We are both bringing complimentary tools, complimentary customers, and complimentary geographies together," Burns told CRN. "The MSP business is a massive market. And this is Vista recognizing the market's growth."

Peter Rawlinson, Datto's chief marketing officer, said both the IT industry and Vista have seen how important the MSP market has become, and that bringing the two companies together becomes a force multiplier for reaching MSPs.

"The MSP market isn't as well known as, say, the VAR market," Rawlinson said. "For a company like Vista to invest in Autotask and Datto, it shows solid commitment to this business."

Both Autotask and Datto are profitable and growing companies, although neither executive would provide financial details about the companies.

The two companies approach the MSP business from two different perspectives, Burns said. Autotask specializes in tools including professional services automation, or PSA, and business services automation, or BSA, while Datto has full-scale disaster recovery, business continuity, and networking services that MSPs can offer their customers, he said. "So we have the platform for MSPs to run their business and the tools they can deploy to customers," he said. "We're highly complementary to each other."

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