Is Datto for Sale? Morgan Stanley Hired to Find Buyers?
Datto has allegedly hired Morgan Stanley to find potential buyers for the data protection company, two sources close to Datto tell ChannelE2E. The sources say there’s no guarantee the company will actually be sold.
Updated October 25, 2017, 8:43 p.m. ET: Datto and Autotask are merging in a private equity-backed deal.
Earlier this year I believed Datto was mulling an IPO. But rumors that Datto may be seeking a buyer have swirled for at least a month. 451 Research furthered the chatter with a report stating that Morgan Stanley is assisting the process. ChannelE2E sources reinforce that version of the chatter.
Datto did not directly comment about the rumor, but the company offered this statement to ChannelE2E:
“We continue to be focused on building a great company and delivering value to our partners and their businesses. From time to time, we engage in discussions concerning the best options for our future growth. We have no further comment.”
Datto had a $1 billion valuation when the company raised its most recent funding in late 2015. I believe CEO and Founder Austin McChord still owns a majority of the business. A new CFO arrived in mid-2017. The company focuses purely on the MSP market, promoting data protection, backup, disaster recovery, and networking solutions to channel partners.