Mergers and Acquisitions, MSP, IT management

NinjaOne Acquires Dropsuite to Add Data Protection to Endpoint Management

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NinjaOne is acquiring Dropsuite for $252 million to expand its services to MSPs by adding backup and data protection features for customers of its endpoint management platform.

The acquisition will give NinjaOne the capabilities to help business users extend their data protection beyond their endpoints to their SaaS applications, which are heavily targeted by cybercriminals due to their popularity and high adoption rates.

By integrating Dropsuite’s data protection services into NinjaOne’s offering, the company will be able to provide these complementary protections through one platform to protect against threats such as ransomware attacks as well as accidental data deletion and more. For MSPs, supporting one platform rather than two will help simplify MSP operations and reduce potential compatibility problems for customers, according to NinjaOne.

The combined platform will provide extended data protection, automated setup and recovery, native multi-tenancy for easier MSP administration, and enhanced data discovery and search for users.

Endpoint Threats are Expanding

The deal comes as endpoints face increasingly dangerous threats, requiring more protections and expanded platform services due to the constant pressures of cybercriminals, Erzan Uygur, vice president of business and corporate development at NinjaOne, told ChannelE2E.

“The reality is that the endpoint is evolving from a device to a user right in front of us,” said Uygur. “Employees are using more SaaS applications and devices than ever before. According to Enterprise Strategy Group, seven in 10 employees use four or more devices per day at work. It has become increasingly important for organizations to protect and back up data wherever it lives – across both devices and applications.”  

The acquisition of Dropsuite will help NinjaOne provide these broader protections for MSPs and their customers, said Uygur. “NinjaOne and its partners will be able to offer both SaaS application and device backup to protect customers against the impacts of ransomware and other cyberattacks – and even accidental deletion,” he added.

Keeping Up With The Competition

The NinjaOne acquisition of Dropsuite is a strategic move that will help NinjaOne maintain its growing market share and keep it on par with competitors. In December 2024, NinjaOne overtook N-able to claim the number three slot in RMM market share after leaders ConnectWise and Kaseya, according to channel market research firm Canalys. Canalys numbers show NinjaOne growing by 54% in 2024. What’s more, in November, NinjaOne was named to the Champions quadrant of Canalys’ Global RMM and PSA Leadership Matrix for 2024.

In February 2024, NinjaOne secured $231.5 Million in series C funding, raising its valuation to $1.9 billion. Notable participants in the round included Amit Agarwal, president of Datadog, and Frank Slootman, former CEO of Snowflake and ServiceNow.

This acquisition is the latest in an ongoing trend of companies that are plugging in more data protection, disaster recovery and remote monitoring and management (RMM) capabilities into their products – much of it due to increasing customer demand and the constant search for increased revenues. In September of 2024, MSP platform vendor ConnectWise announced the acquisition of data protection and disaster recovery provider Axcient shortly after acquiring SkyKick, a cloud backup and management software company, according to an earlier ChannelE2E report.

This Deal is Not an Aberration: Analysts

Shelly Kramer, principal analyst at Kramer&Co, told ChannelE2E that the long-time practice of vendors adding new product capabilities through acquisitions is smart because, in many instances, it is faster and more logical to buy features than to build them from scratch.

“Moreover, from a customer standpoint, the tech stack is more complex than ever before, and reducing the complexity is attractive to customers, so products that are multi-faceted are, in many instances, more compelling than standalone products,” said Kramer. “This was a smart move by NinjaOne and Dropsuite. It is a move clearly designed to better serve their collective customers, but the value of the combined entity is strengthened exponentially. The growing use of SaaS applications across devices adds to the security challenges customers face, making a product that can provide enhanced protection across devices, apps, and of course, endpoints quite attractive.”

And that “not-insignificant price of $252 million is indicative of the growing demand for protection from endpoint to SaaS,” she added. “As the number of things connected to the internet endpoints grows, so does the risk.”

She said that this deal's value is significant for MSPs because “the ability to bring more comprehensive solutions to customers is a win across the board for everyone.” 

Another analyst, Jay McBain, chief analyst of channels, partnerships and ecosystems with  Canalys, said he also sees this as a good product match.

“There is a lot more to this deal than meets the eye – think data and the investments NinjaOne got from the founders of ServiceNow, Snowflake and Datadog,” said McBain. “This adds 1.7 million endpoints to add to this AI-driven conversation. This is not just a large RMM player consolidating to grow for the sake of revenue growth only.”

The NinjaOne acquisition of Dropsuite is expected to close in the first half of 2025, subject to approval by Dropsuite’s shareholders, court approval, Australia’s Foreign Investment Review Board, and other customary closing conditions.

Todd R. Weiss

Todd R. Weiss is a contributing editor to ChannelE2E and MSSP Alert. He is an award-winning technology journalist and freelance writer who covers the full range of B2B IT topics. He served as managing editor at EnterpriseAI.news and was a staff writer for Computerworld and eWeek.com. He is a diehard Philadelphia Phillies, Eagles, Flyers and Sixers fan and says he is the world’s worst golfer.

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