Kaseya Acquires RapidFire Tools
Kaseya has acquired RapidFire Tools, a popular MSP software provider focused on internal threat detection, network and security assessments, and compliance products. Moreover, Kaseya will likely make additional acquisitions in the near-term, CEO Fred Voccola hinted to ChannelE2E in a recent interview.
RapidFire Tools’ product lineup includes:
- Audit Guru, which helps users automate, document and achieve compliance;
- Network Detective, which more than 6,000 MSPs use for network and security assessments; and
- Cyber Hawk for continuous cyber security threat detection and alerting.
ChannelE2E first hinted about the potential Kaseya-RapidFire Tools business combination (see items 1 and 2 in that link) in May 2018. The two companies have spent almost a year deeply integrating RapidFire Tools with Kaseya’s IT Complete platform, including VSA (Virtual System Administrator) — a popular RMM (remote monitoring and management) software offering for MSPs.
Moreover, the companies today unveiled Kaseya Compliance Manager (KCM). That offering allows MSPs and internal IT organizations to monitor and manage compliance for regulations and requirements, including GDPR, HIPAA, and PCI, the companies assert.
Amid those integrations and launches, Kaseya also vowed to maintain RapidFire Tools as an open platform — integrating with third-party MSP products across the ecosystem. That’s a familiar theme that rivals ConnectWise, Continuum, Datto and SolarWinds MSP have also made to their ecosystems amid recent M&A deals and R&D moves.
Kaseya and RapidFire Tools: Behind the M&A Dance
Kaseya and RapidFire Tools have quietly explored a possible M&A combination during those software integration efforts, Voccola told ChannelE2E.
“For the past nine months we’ve been in varying degrees of discussion around an acquisition as we started working with RapidFire on the integration and build out of the Kaseya Compliance Manager offering,” Voccola says.
And while RapidFire is popular with MSPs, the company’s offerings also appeal to midmarket IT pros who work for internal IT departments, the companies assert. ” RapidFire tools offer a variety of solutions, including those that serve service providers and also internal IT departments,” he adds.
In a prepared statement about the deal, RapidFire Tools CEO Michael Mittel said:
“One of RapidFire Tools’ greatest strengths is our strong partnerships with other IT management platform providers. It cannot be overstated the importance of becoming a part of the Kaseya family and knowing with confidence that our customers can continue to effectively run their businesses because of Kaseya’s open ecosystem. This deal took some time to complete but both sides easily recognized the benefits that joining forces offers our customers. The RapidFire Tools brand will remain unchanged and our existing customers can rest assured knowing that they will continue to receive the same high caliber products, services, and support. This is an exciting time for all of us. By being a part of Kaseya, we can now broaden the reach of RapidFire Tools to the scale we envisioned when we launched the company.”
Headquartered in Atlanta, Georgia, RapidFire Tools will remain a stand-alone, independent business-unit under Kaseya. Financial terms of the deal were not disclosed.
MSP Software Rivals: M&A Showdowns
Major MSP software providers have been researching or acquiring a range of security and IT compliance businesses in recent months. Key moves have included:
- ConnectWise building out an ecosystem of software ISVs and hardware partners. The efforts include a security dashboard — initially supporting Cisco Solutions. Plus emerging relationships with such companies as Arctic Wolf Networks (SOC as a service), AlienVault (recently acquired by AT&T), and Cylance, among others.
- Continuum building out various SOC and managed security offerings for MSPs, while also acquiring CARVIR — a Top 100 MSSP that offers managed security, SIEM (Security Information and Event Management) and EDR (Endpoint Detection and Response) services to MSPs in the SMB (small and midsize business) sector.
- Datto hosting joint cybersecurity conferences with technology partners, developing a unified threat management (UTM) appliance, and exploring the market for M&A targets.
- SolarWinds MSP acquiring Trusted Metrics, a provider of real-time threat monitoring and management software, and security operations center (SOC) technology.
Kaseya: More Acquisitions or An Exit Coming?
Kaseya has acquired multiple companies in recent years, including the Unitrends business continuity business earlier this year. If I had to guess, at least one more M&A deal will surface in the next couple of months, and then perhaps one or more within the next six to 12 months.
Currently owned by a private equity firm, it’s a safe bet Kaseya will explore a potential IPO or strategic exit within the next 12 months, ChannelE2E believes.
We’ll share more thoughts soon.