Datto buys Backupify to add data protection to their portfolio
Backupify is being acquired by Datto so that the company can offer a complete range of data protection and recovery products, without it having to exactly where that data resides. The two companies are in the business of data backup and restoration, but what makes Backupify strong in this regard, is its “function of protecting SaaS objects — such as data in Google Docs or Salesforce.com — while Datto is more focused on protecting Windows and Linux apps that are running either on premises on physical servers or on local or private clouds” according to Datto CEO Austin McChord,
Cambridge, Massachusetts–based Backupify sells mostly to enterprise accounts, which has been its source of success and Datto relies on sales through managed service providers (MSP) resellers that deal with small to medium enterprise accounts.
McChord said: “We have a divergent customer base and we’re excited about bringing Backupify down to SMBs and Datto up to Backupify’s big accounts. It’s almost amazing how little overlap there is. We are incredibly complementary and are joining together to build a data protection platform to protect data everywhere.”
Datto, based in Norwalk, Connecticut, will hold on to the Backupify name and its 100 workers in Massachusetts, which is the only known agreement in the buyout deal. These additional workers bring the total employee count of Datto’s to close to 400 people.
Avalon Ventures, General Catalyst Partners, First Round Capital, Lowercase Capital, Symantec and other companies had invested just under $20 million whereas Datto has put down a $25 million price-tag on the buyout in just one round. General Catalyst was the shared investor and was the leader in this investment.