Managed services News
Kaseya Closes The Datto Acquisition: 6 Things To Know
Joseph F. Kovar, C.J. Fairfield
Here are six key things to know about Kaseya’s $6.2 billion acquisition of Datto, including the news that Datto CEO Tim Weller will not be a part of the new company.
Renewed Focus On R&D Investment
Kaseya intends to increase its investment in R&D engineers on every product because the increase in value of a company depends on such investments, Voccola said.
There are two primary ways a company can create value in an acquisition, he said.
“One is you can cut the [heck] out of costs and you make money because you‘re saving money,” he said. “You want to increase your profit, you cut a lot of costs. The second way is you grow revenue, and growing revenue leads to more profit. How do you grow revenue? You have to invest. The thesis for this deal, the $6.2 billion and change that Insight and myself and the investors signed up for, is 100 percent about growth, which means it’s 100 percent about investment. It‘s not a cost-reduction investment thesis.”
Voccola said he is angry when competitors spread what he called FUD--fear, doubt and uncertainty--about the acquisition.
“[They’re] saying, ‘Oh, everything about Datto is going to go away,’” he said. “That’s stupid. And when they say that, they‘re just trying to take advantage of the fact that we couldn’t come out and say the truth because Datto is a public company. Now we can. Those are facts. Hold me accountable.”