ScalePad, backed by Integrity Growth Partners, has acquired Backup Radar, an end-to-end automation platform for backup monitoring, reporting and compliance. Financial terms of the deal were not disclosed.
This is technology M&A deal number 724 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Backup Radar and ScalePad: Commitment to MSP Partners
Backup Radar, founded in 2015 by Patrick Leonard, has locations in Covington, Louisiana and Vancouver, British Columbia. Roughly 1,000 MSPs leverage Backup Radar to monitor over 375,000 backups daily, the seller indicated.
Meanwhile, ScalePad's software allows MSPs to automate asset lifecycle management across hardware, software and warranty services. ScalePad, previously known as Warranty Master, supports roughly 8,500 MSPs. ScalePad CEO Dan Wensley is a well-known MSP software industry pioneer who previously held key posts at Passportal (now owned by N-able) and Level Platforms (which developed RMM software now owned by Barracuda).
The ScalePad and Backup Radar businesses have similar business DNA. Top Down Ventures, an investment firm led by former IT Glue CEO Chris Day, made early investments in both ScalePad and Backup Radar.
ScalePad Acquires Backup Radar: “The Same Vision and DNA”
In a prepared statement about the M&A deal, Leonard said:
“I am thrilled that Backup Radar partners and employees are joining ScalePad. With ScalePad’s veteran leadership and hyper-focus on IT service providers, the combined organization will provide Backup Radar with the tools needed to continually impress partners and their clients.”
Doyl Burkett, managing partner and founder at IGP, added:
“The team at Integrity Growth Partners was happy to help fund this strategic acquisition for ScalePad. We see a tremendous opportunity in the MSP market and Backup Radar was a natural fit with ScalePad’s people, partners and platform. We look forward to working with Dan and his team on future acquisitions that will strengthen their position as a leading technology provider for MSPs worldwide.”
“We are excited to welcome Backup Radar employees and partners to ScalePad. While we share hundreds of partners globally, our plan is to leverage our combined resources to deliver increased value and enhanced services to all partners and both platforms while maintaining each products' independence in the market. Both companies share the same vision and DNA, making the addition of Backup Radar to ScalePad a perfect fit.”
M&A and Investments: Backup, Disaster Recovery (BDR) and Data Protection
Meanwhile, M&A activity within the data protection market remains strong. Private equity firms and venture capitalists also continue to invest in the sector amid strong MSP and customer demand for data protection services.
Recent M&A deals include:
- September 2021: JungleDisk, backed by two private equity firms, acquired three backup, disaster recovery (BDR) and data protection businesses from J2 Global.
- June 2021: OwnBackup acquired Nimmetry.
- March 2021: Datto acquired Gluh to expand into sales automation software for MSPs.
- February 2021: Arcserve and StorageCraft merged.
Also of note...
- Acronis, backed by Goldman Sachs, has been particularly aggressive in the service provider market lately while also acquiring multiple companies.
- After a lost decade under Symantec’s former ownership, Veritas is back making acquisitions.
- Veeam, backed by private equity firm Insight Partners, continues to grow organically and via acquisition.
Here’s a more expansive look at the overall data protection market.
Additional insights from Joe Panettieri.