Datto IPO Filing Gets Thumbs Up from Channel Businesses

Channel businesses are excited about a Datto IPO filing and how it will benefit them.

Datto on Tuesday filed plans to go public with the Securities and Exchange Commission. It hasn’t said the number of shares it will offer or the price range for the stock at its debut.

Datto intends to list its common stock on the New York Stock Exchange (NYSE) under the ticker symbol “MSP.” Vista Equity Partners owns Datto.

In its SEC filing, Datto said the IPO could raise up to $100 million; however, Renaissance Capital said this is likely a placeholder for a deal it estimates could raise up to $400 million.

Datto’s Tim Weller

“We believe SMBs will adopt technology faster than ever as the world emerges from this pandemic,” Tim Weller, Datto’s CEO, said in the filing. “We expect MSPs will help them more than ever. Datto will be there as technology creator, thought leader and support partner as they deploy new applications; navigate technology on-premises, in public clouds and in hybrids of both; and continue to defend against proliferating security threats. Our journey forward is as a leader in an ecosystem comprised of global partners, employees and other vendors that created our success to date.”

When we reached out, Datto said it can’t comment on the IPO filing.

Greater Investment a Good Thing

Todd Weber is Optiv‘s CTO for the Americas.

Optiv’s Todd Weber

“Greater investment in cybersecurity technologies is inherently a good thing for enterprises and their consumers,” he said. “We look forward to Datto’s successful IPO and continuing to work together to deliver cloud-based solutions for Optiv’s managed security services clients.”

Kyle Hanslovan is Huntress Labs‘ CEO and co-founder.

“We’re really excited about Datto’s IPO announcement,” he said. “It’s a major validation of the opportunities the channel provides to fellow vendors, and should bring more resources and better products to partners serving the SMB market. Considering the outcome of the recent JAMF and Snowflake IPOs, we think Datto is set up for success with their public offering.”

As of June 30, Datto reported $507 million in annual recurring revenue and 17,000 MSP partners. It also reported a 19% year-over-year increase in subscription revenue.

In July, Bloomberg reported Datto was confidentially moving forward with an IPO that could come as early as this year.

Dennis Hahn is data center storage analyst at Omdia. He said the IPO could help the company serve more clients desperate for ransomware protection.