How Kaseya aims to fuel IT management growth
Kaseya announced that it has completed an investment of more than $500 million to accelerate its growth, customer momentum and innovation of IT Complete, the industry's first purpose-built, end-to-end IT infrastructure management platform for MSPs and SMBs.
Investors include Texas Pacific Group (TPG), a leading global alternative asset firm, and Insight Partners, an existing investor in the company.
The investment will further propel the tremendous momentum that Kaseya enjoyed in 2018, which saw the company grow over 30 per cent while increasing its customer base to approximately 40,000 customers worldwide, as well as successfully completing and integrating four major acquisitions between Unitrends, Spanning Cloud Apps, RapidFire Tools, and IT Glue.
Kaseya will use this investment and partnership to fuel growth through additional strategic acquisitions, deeper expansion into international markets, and increased R-D spending on cutting-edge, customer-centric products.
“Technology is becoming more critical for small to mid-size businesses every day, and whether they receive it from a managed service provider or their own internal IT department, they want more efficient solutions that yield greater results,” said Kaseya CEO Fred Voccola.
“We're excited to partner with TPG, who will help us explore opportunities to continue our growth and deepen our commitment to the market, our products, and our customers' success.
“This investment validates our position as the only industry player that can offer these innovative, integrated solutions from a single pane of glass. We remain highly focused on increasing investment in our products and customers and look forward to serving this fast-growing market long into the future.”
Kaseya's growth investment comes on the heels of recent acquisition activity in the space, which has led to potential restructuring and unrest within the managed services community as the market continues its rapid growth.
The managed services market is expected to grow from US$180 billion currently to US$282 billion by 2023, a compounded annualised growth rate of 9.3 per cent, according to research firm MarketsandMarkets.
TPG-related entities investing in Kaseya include TPG Growth, TPG Tech Adjacencies (TTAD), and TPG Sixth Street Partners (TSSP). Evercore Partners, a global independent investment banking advisory firm represented Kaseya in this transaction. Barclays served as financial advisor to TPG.