Datto, Kaseya Parent Insight Partners Dominates Cloud Backup Market

Datto's next owner -- Kaseya -- is backed by Insight Partners, a private equity giant that holds key positions across the cloud backup market through multiple venture capital and private equity investments.

Indeed, Insight Partners' key cloud backup investments include CoreView, Kaseya (owner of Unitrends and Spanning), OwnBackup, Rewind and Veeam. Now, Datto is set to tuck into Kaseya.

Rumors about Insight Partners potentially acquiring Datto reached ChannelE2E's inbox in mid-March 2022. The wildcard: Would Insight Partners merge Datto into portfolio company Veeam or sister investment Kaseya?

The answer to that question surfaced on April 11, 2022 -- when Kaseya disclosed plans to buy Datto for $6.2 billion. The deal, largely funded by Insight Partners, will create an MSP technology giant valued at more than $8 billion or so.

Amid the M&A deal, most eyes are on the MSP technology market -- which is both consolidating (see more than 1,000 M&A deals listed here) and growing. Indeed, the worldwide managed services market will reach $557.1 billion by 2028, which represents a 12.6% compound annual growth rate (CAGR) from 2020, according to Fortune Business Insights research.

Private Equity and Cloud Backup: Insight Partners Key Investments, Acquisitions

Still, MSPs should also keep a close eye on the data protection market -- where Insight Partners has growing reach and influence that extend beyond the Kaseya-Datto deal.

Over the past decade or so, Insight Partners has made multiple cloud backup and disaster recovery (BDR) investments as well as acquisitions. Here's a timeline of Insight Partners' key moves:

Kaseya Connect IT and DattoCon 2022: Next Moves Coming?

So what's next? Keep an eye on the Kaseya Connect IT Global 2022 conference (which is set for June) and DattoCon 2022 (which is scheduled for September).