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Datto-Autotask Merger: Status Update for MSPs Serving SMBs

Datto CMO Pete Rawlinson
Pete Rawlinson

It has been nearly a month since Datto and Autotask announced their planned merger. The deal will unite two technology companies that offer data protection, networking, management and monitoring platforms for MSPs that support SMB customers. There also are some emerging security offerings in the mix...

So how is the business combination coming along? The simple answer, at least from where we sit, sounds something like: So far, so good.

The merger is still on track to close sometime in 4Q 2017, Datto Chief Marketing Officer Pete Rawlinson tells ChannelE2E. To hit the ground running, the companies have created integration teams across all departments in both organizations to work through a 30-60-90 day integration plan, he adds.

"We are communicating important developments on a weekly basis to our collective MSP communities,"Rawlinson says. "The mood on both sides is very positive. We see the potential of the combined companies as being game-changing for the industry."

While M&A deals can sometimes involve massive consolidation to boost profit margins, that isn't the case with the pending Datto-Autotask combo. "This combination is all about growth," Rawlinson adds. "Both companies are being very thoughtful about how we come together, but one thing is certain, we’re continuing to put the MSP first in all our decisions."

Datto Founder Austin McChord

Datto CEO Austin McChord will lead the combined business. An official name for the combined company has not surfaced, but I'm guessing it will simply be Datto (purely a hunch on my part; I could be completely wrong). In terms of R&D, leaders at both companies have been brainstorming ways to more fully integrate their product portfolios while retaining coopetition (i.e., cooperating and competition) with third-party companies.

Rivals, meanwhile, are watching the deal closely while also planning their own R&D strategies. Most recently, ConnectWise vowed to work more closely with Infrascale and other BDR vendors while maintaining a relationship with Datto's own BDR team.

We'll be sure to check in with both Datto and Autotask after the Thanksgiving holiday for more updates on the pending business combination.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.