Datto's next owner -- Kaseya -- is backed by Insight Partners, a private equity giant that holds key positions across the cloud backup market through multiple venture capital and private equity investments.
Rumors about Insight Partners potentially acquiring Datto reached ChannelE2E's inbox in mid-March 2022. The wildcard: Would Insight Partners merge Datto into portfolio company Veeam or sister investment Kaseya?
The answer to that question surfaced on April 11, 2022 -- when Kaseya disclosed plans to buy Datto for $6.2 billion. The deal, largely funded by Insight Partners, will create an MSP technology giant valued at more than $8 billion or so.
Amid the M&A deal, most eyes are on the MSP technology market -- which is both consolidating (see more than 1,000 M&A deals listed here) and growing. Indeed, the worldwide managed services market will reach $557.1 billion by 2028, which represents a 12.6% compound annual growth rate (CAGR) from 2020, according to Fortune Business Insights research.
Private Equity and Cloud Backup: Insight Partners Key Investments, Acquisitions
Still, MSPs should also keep a close eye on the data protection market -- where Insight Partners has growing reach and influence that extend beyond the Kaseya-Datto deal.
Over the past decade or so, Insight Partners has made multiple cloud backup and disaster recovery (BDR) investments as well as acquisitions. Here's a timeline of Insight Partners' key moves:
- April 2022: Kaseya -- an Insight-backed company -- acquired Datto, though the deal won't close until the second half of 2022, Kaseya estimates.
- September 2021: Invested in Rewind, a cloud backup and disaster recovery (BDR) startup.
- August 2021: Participated in OwnBackup's Series E funding round, valuing the Salesforce cloud backup provider at $3.35 billion.
- October 2020: Invested in CoreView, which develops a Microsoft 365 cloud management platform for MSPs.
- March 2020: Acquired Veeam at a $5 billion valuation.
- May 2019: Invested fresh money into Kaseya.
- May 2018: Tucked Unitrends into Kaseya.
- October 2018: Tucked Spanning Cloud Apps into Kaseya.
- April 2017: Acquired Spanning Cloud Apps from Dell EMC.
- 2013: Acquired Unitrends and Kaseya.