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Datto, Autotask Merger Finalized

Adam Stewart
Adam Stewart
ClickSoftware VP of Product Pat Burns, an Autotask veteran
Datto Founder Austin McChord

The Datto-Autotask merger is now finalized under the Datto name, the companies announced today. As expected, Datto CEO Austin McChord will lead the combined company -- which is owned by Vista Equity Partners. Also, Autotask veterans Patrick Burns and Adam Stewart join the Datto executive team, while Autotask CEO Mark Cattini exits from the combined business.

The combined company serves 13,000 MSPs working with more than 500,000 SMBs. Datto claims to be "the largest MSP-centric tech company in the world" but rival SolarWinds MSP may claim otherwise -- serving about 20,000 MSPs in the remote monitoring world. One potential caveat: Datto's pure-play focus is on MSPs, while SolarWinds MSP is part of a larger IT firm that also supports corporate IT professionals.

Datto By the Numbers

The overall Datto product line now supports professional services automation (PSA), backup and disaster recovery, networking continuity, file sync and share, and remote monitoring and management (RMM). Entrenched rivals include ConnectWise, Continuum, Kaseya and SolarWind MSP. Potential rivals from closely related IT sectors include Veeam and Druva (data protection), Cisco Systems (networking) and more. 

Datto apparently exits 2017 with good momentum, though ChannelE2E does not know actual revenue or profit figures. Among the 2017 milestones, according to the company:

  • MSP Base: Since last year, a 30% growth in the total number of Datto MSPs in the same year over year period. I don't believe that includes the Autotask figures; we're checking.
  • Networking: On the networking front, Datto now supports 100,000 networks and 30 million monthly wireless users. 
  • Geographic Expansion: The combined entity now has a presence in 125 nations worldwide, and in 2017 opened new offices in Frankfurt, Germany; Amsterdam, Netherlands; New York City and in Portland, Oregon.  

Remaining Questions

ChannelE2E checked in with Datto for some additional thoughts. Among our key questions:

  1. Staffing: If or how Datto will combine additional responsibilities across sales, marketing R&D and more, and whether those combinations may require some headcount cuts in the former Autotask or Datto. I realize the deal is about growth but we're checking to see if all overlapping positions will be retained.
  2. Conferences: DattoCon 2018 is set for June 2018 in Austin, Texas. Autotask Community Live 2018 is scheduled for September near Miami. Will Datto move forward with Autotask Community Live?
Datto CMO Pete Rawlinson

In an email exchange with ChannelE2E, Datto Chief Marketing Officer Pete Rawlinson offered these insights:

  1. Staffing: "We’re still looking at what makes sense at levels below the executive team. As we refine our go-to-market plan, we’ll have the most appropriate folks in the right roles. That will probably consist of a combination of Datto and Autotask senior leadership -- there’s a lot of combined institutional knowledge here!"
  2. Autotask Community Live 2018: "We have not yet made a decision on ACL. It’s a high priority decision we need to take and will do so in the coming weeks."
  3. Overall Headcount: "At this time we’re about 1,400 employees combined. How these employees come together will be worked out over time. As we’ve stated previously, this whole transaction was predicated on growth, so it’s all about having the right people in the right roles. It will take time to work that out."

ChannelE2E will continue to track the M&A deal and Datto's next moves.

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.