Datto (company)
| Company type | Subsidiary |
|---|---|
| Industry | Cybersecurity, data backup, IT management |
| Founded | January 1, 2007 Norwalk, Connecticut, U.S. |
| Founder | Austin McChord |
| Headquarters | Norwalk , United States |
Area served | Worldwide |
Key people | Tim Weller (CEO) |
| Products | Data backup, disaster recovery, business continuity, remote monitoring and management, professional services automation, networking, SaaS |
Number of employees | 2089 (2021) |
| Parent | Kaseya |
| Website | www |
Datto, Inc. is a U.S.-based firm specializing in cybersecurity and data backup solutions, established in 2007 by entrepreneur Austin McChord and headquartered in Norwalk, Connecticut. Following its acquisition by Vista Equity Partners in 2017, Datto became part of Kaseya in 2022. The company delivers both hardware and software products focused on data backup, disaster recovery, and ensuring business continuity.
The range of Datto’s offerings encompasses Disaster Recovery and Business Continuity (BCDR), Remote Monitoring and Management (RMM), Professional Services Automation (PSA), Networking, and Software as a Service (SaaS). Its cloud-driven Datto RMM platform empowers managed services providers to automate IT infrastructure management, featuring capabilities like network monitoring, patch deployment, remote access, and bulk script execution. This platform supports policy-driven patching for Windows and third-party applications, with options to cache updates locally or download them directly from Microsoft to optimize bandwidth usage.
By 2021, Datto reported revenues of $618 million alongside a net income of $51 million. Its total assets were valued at $1.962 billion with shareholders’ equity at $1.811 billion. The company employed 2,089 individuals worldwide, underscoring its expanding global footprint and strengthened position within the cybersecurity market.
Establishment of Datto
Founded in 2007 in Norwalk, Connecticut by software developer Austin McChord, Datto initially focused on creating handcrafted data backup hardware. By 2008, McChord had engineered a solution enabling data synchronization between two computers and subsequently developed a Linux-based iteration of Zenith InfoTech.
By late 2009, monthly sales had reached $70,000. Following a product malfunction in 2010 that caused system failures, the company revamped its technology and introduced the SIRIS platform as a complimentary upgrade. This led to rapid revenue growth—achieving $9 million in 2011 and escalating to $25 million by 2012.
Datto’s international presence began in July 2013 with the acquisition of its UK distributor Paradeon Technologies. Two months later, it secured $25 million in venture funding led by General Catalyst Partners. The company continued focusing on small to medium-sized businesses through managed service providers (MSPs), serving clients including Susan G. Komen for the Cure and professional NFL teams.
In 2014, Datto expanded its cloud capabilities by acquiring Backupify, a provider specializing in cloud-to-cloud backup services that complemented its existing local and private cloud solutions.
By November 2015, after raising $75 million in Series B funding under Technology Crossover Ventures’ leadership, Datto became Connecticut’s first "unicorn" startup. It also broadened its reach into Australia and New Zealand by opening an office in Sydney and employed approximately 550 people.
June 2016 saw the launch of SIRIS 3 x 1—the industry’s first all-flash BCDR device featuring ransomware detection technology. The following month, Datto established its EMEA headquarters in Reading, UK; expanded data center infrastructure to Iceland and Germany; and secured distribution agreements throughout Europe.
The SIRIS 3 data protection system was unveiled in October 2016. By early 2017, the company’s workforce had grown to around 700 employees.
Datto acquired Open Mesh in January 2017 to broaden its product suite. Later that year, it inaugurated an office in Amsterdam to serve the Benelux market. By October 2017, the global headcount reached 883 employees, nearly half based at the Norwalk headquarters.
In late 2017, Vista Equity Partners purchased Datto for nearly $1.5 billion. This transaction combined Datto with Autotask Corporation—another Vista portfolio company—with founder Austin McChord remaining CEO initially before stepping down in October 2018 while continuing as a board member.
Tim Weller took over as CEO in January 2019 after joining as CFO in 2017; his background includes leading Akamai Technologies through its IPO and experience with clean energy firm Enel X.
Continuing its acquisition strategy, Datto purchased Australian MSP platform Gluh in July 2020 to streamline IT procurement processes for clients.
The company went public on the New York Stock Exchange via an IPO in October 2020, raising $594 million by issuing 22 million shares.
In January 2022, Datto enhanced its cybersecurity portfolio by acquiring Infocyte, a threat detection company based in Austin.
Finally, in June 2022, Kaseya acquired Datto for $6.2 billion, further strengthening its position within the IT management sector.
See also
References
- 2017 mergers and acquisitions
- 2020 initial public offerings
- 2022 mergers and acquisitions
- American companies established in 2007
- Companies based in Norwalk, Connecticut
- Companies formerly listed on the New York Stock Exchange
- Computer security companies
- Data companies
- Software companies based in Connecticut
- Software companies established in 2007
- Companies of the United States by year of establishment