Datto Acquires Gluh: MSP Sales Automation, Procurement and More
Datto has acquired Gluh Pty, a sales quoting and procurement platform for managed IT services providers (MSPs). Gluh’s cloud-based system appears to allow MSPs to accelerate and simplify their B2B supply chains, and extend self-service sales and product selection capabilities to end-customers.
- Related Interview: Datto CEO Tim Weller further explains Gluh acquisition.
- Related Update, November 23, 2020: Datto paid $4.4 million for Gluh, according to an SEC filing.
This is M&A deal 291 that ChannelE2E has covered so far in 2020. See the complete M&A deal list here.
According to Datto, the Gluh platform allows MSPs to:
- Automate the processes of product selection, quoting, and sales of IT products and services for MSP clients.
- Create easy-to-edit proposals in 30 seconds.
- Extend self-service capabilities from MSPs to SMB customers, with the MSPs remaining in control of the technology sale. Those customers can access, shop, and purchase from approved devices cataloged by MSPs, improving the customer experience, Datto says.
Still, there are some limitations: Gluh is currently available only in Australia and New Zealand (ANZ). More information on the integration and commercial availability outside of ANZ will be available later in 2020, Datto says.
Among the dates ChannelE2E will be watching: Perhaps more details will emerge at DattoCon Berlin 2020, which is scheduled for October.
Datto Acquires Gluh: Six Items for MSPs, Partners and Rivals to Note
The deal has strategic and symbolic importance to Datto, the overall MSP industry, and rivals. Among the items to note:
1. Integrations to simplify product sourcing: Gluh integrates with multiple MSP management tool providers (Datto Autotask PSA and ConnectWise Manage), and such distribution suppliers as Arrow ECS, D&H, Ingram Micro, Jenne, ScanSource, Synnex, and Tech Data, among others.
4. Back to the future: Ironically, Autotask — which Datto acquired in 2017 — once owned a sales automation system called VARStreet. But that platform never lived up to its promise under Autotask’s ownership, and VARStreet was sold off before Datto acquired Autotask.
5. First acquisition: Well, not really. But sort of. Datto has made multiple acquisitions, but I believe this is the company’s first acquisition under CEO Tim Weller — who has led the company since founder Austin McChord stepped down more than a year ago. No doubt, Weller has plenty of acquisition experience working with executive teams. But completing an M&A deal as CEO during the coronavirus pandemic is a strong vote of confidence from private equity parent Vista Equity Partners.
6. Preparing for IPO: The deal surfaces less than two days after Datto filed for a potential IPO (initial public offering).
Financial terms about the acquisition were not disclosed.
Datto Acquires Gluh: Executive Perspectives
In a prepared statement, Datto CEO Tim Weller said:
“Quoting and procurement is often considered a major pain point in the sales cycle for many MSPs because it is a manual and time-consuming process. Not only is this a missed revenue opportunity, but it’s a great area where MSPs can build deeper engagement and trust with their clients. We are extremely impressed at the simplicity and design of Gluh’s technology, which empowers our partners to sell a broader IT portfolio in this accelerated digital economy. We welcome Gluh to the Datto family.”
Added Lorenzo Coppa, co-founder of Gluh:
“We believe that SMBs should be able to rely on MSPs for more of their technology needs, and our platform empowers MSPs to improve their operations while delivering customer value to their clients. Gluh’s MSP marketplace features a PSA quoting tool that has enabled MSPs to increase revenue by 30 percent and results in 80 percent related operational savings. We share a common vision with Datto about how we serve MSPs, and we embrace the opportunity to join our communities and bring this application to a broader MSP partner base around the world.”
The entire Gluh team will join Datto, though headcount figures were not disclosed. Gluh is headquartered in Melbourne, Australia and will maintain its Melbourne operations.