Cloud storage companies Datto and Backupify merge
In major news for the New England tech world, Connecticut-based Datto has announced its acquisition of Cambridge, Massachusetts-based Backupify. The two companies specialize in cloud-based data protection and backup systems, and experts speculate the deal was closed with a combination of cash and stock shares.
Kyle Alspach of BostInno reports that the merged company will boast more than 500 employees and may generate revenue upwards of $100,000,000 this year. Datto has grown exponentially through the investments from General Catalyst and others, which contributed to a $25 million capital drive in 2012. Backupify, originally founded in Kentucky before its relocation to Cambridge, raised $19.5 million from other investors.
Backupify will operate as a subsidiary of Datto, now as a product brand. In a press release announcing the merger, Datto explained that joining forces with the company will allow the firm to continue adapting to ever-changing demands on data security and cloud technologies. Backupify lends extensive development in app-based cloud technologies, while Datto has pioneered "hybrid" clouds that combine storage between onsite and offsite hosts.
"Backupify provides must-have solutions for companies entrusting their data to SaaS applications, and our team will help complete the vision of creating a Total Data Protection Platform that extends across a company's entire digital ecosystem, as well as expand to new global markets, including Europe, Asia, and Latin America," said Austin McChord, founder and CEO of Datto.
With regional competitors in New England, as well as others in tech hubs around the country, combining resources and talent could help Datto compete globally. In 2013, Datto reported $48.9 million in revenue, while Backupify raked in between $5-10 million last year. The companies enter 2015 with a new partnership and new prospects for cloud storage development.