Processing Your Payment

Please do not leave this page until complete. This can take a few moments.

October 23, 2020

Datto meets $594M IPO goal in NYSE debut

PHOTO | CONTRIBUTED CEO Tim Weller
By Natalie Missakian

Norwalk-based software firm Datto is now a public company after raising $594 million as it debuted on the New York Stock Exchange this week.

Datto Holding Corp. sold 22 million shares of stock at $27 in the IPO, the high end of its $24 and $27 million price range, giving it a market capitalization of $4.25 billion.

The stock, which trades under the symbol “MSP,” opened Wednesday at $32 a share, 18.5% over the IPO price. It reached a high of $32.36 before landing in the $28 range, and was trading at $28.26 as of late morning Friday.

The company said it netted $549.5 million after underwriting discounts and expenses, which it plans to use to pay off debt.

Norwalk resident Austin McChord founded the company as a data backup and disaster recovery startup after creating a backup device in his parents’ basement in 2007. In 2015, it became the first private company in Connecticut to surpass $1 billion in valuation.  

The company provides cloud-based software and technology services to small and medium-sized businesses through its network of managed service providers (MSPs).  

Private equity and venture capital firm Vista Equity Partners bought Datto in 2017 and merged it with New York-based Autotask. McChord stepped down in 2018 but remains on the board. 

CEO Tim Weller said in paperwork filed with the SEC last month that the pandemic has increased demand for Datto’s services as companies began operating virtually. 

Contact Natalie Missakian at news@newhavenbiz.com

Sign up for Enews

Most Recent

Most Recent

0 Comments

Order a PDF