MSP - Software company Datto said to explore sale after takeover interest

Datto Holding Corp. (NYSE:MSP) is said to be considering its strategic options including a possible sale after the maker of cloud-based data backup software received takeover interest from private equity firms. Datto has hired an adviser to solicit interested from possible buyers, according to a Bloomberg report. Datto (MSP) has a market cap of $3.7 billion. Data recovery company Datto, which is backed by Vista Equity Partners, went public in October 2020 and the shares have fallen 13% since the IPO. Datto's products include mission-critical business continuity and disaster recovery, where the company competes with VMware (NYSE:VMW), IBM (NYSE:IBM)  and Open Text (OTEX) owned Carbonite. Datto has a short interest of 17%. See SA contributor Donovan Jones' piece from January entitled "Datto Launches Promising Offerings But Faces Valuation Contraction."

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Software company Datto said to explore sale after takeover interest