Momentum Cyber Served as Exclusive Financial & Strategic Advisor to Infocyte on its Acquisition by Datto

“We look forward to joining Datto and to further securing the SMBs and other clients served by its vast network of MSPs around the world. Securing endpoints from advanced threats continues to be a top challenge for SMBs. With Datto’s partner community and growing security portfolio, we will be able to dramatically expand our reach to millions of endpoints under management, enabling Datto’s partners to provide their SMB customers with leading detection and response technologies.” – Curtis Hutcheson, CEO of Infocyte

“The addition of the Infocyte team and technologies augments our capabilities within the critical Protect, Detect, and Respond stages outlined in the NIST organizational security framework. Infocyte’s offerings are complementary to Datto RMM Ransomware Detection and SaaS Defense application security products in those same NIST stages. In 2022, we will continue to leverage the power of our Datto RMM platform by fully integrating Infocyte’s patented technology, further securing endpoints and fortifying this key first line of defense for MSPs.” – Tim Weller, CEO of Datto

Transaction Overview

On January 20th, 2022, Datto, a leading global provider of cloud-based software and security solutions purpose-built for Managed Service Providers (MSPs), announced that it has acquired Infocyte, an innovator in Endpoint Detection and Response (EDR) technologies and Managed Detection and Response (MDR) services
Based in Austin, Texas, Infocyte was founded by threat intelligence experts from renowned cybersecurity institutions within the U.S. military, specifically the leaders of the United States Air Force Cyber Emergency Response Team (AFCERT)
Infocyte's patented technologies continuously collect and correlate data from endpoints to identify potential threats, with a team of specialized security analysts in a Security Operations Center (SOC) who can respond in real-time to escalated cyberthreats
The world's leading security and incident response companies use Infocyte's platform to proactively detect and respond to vulnerabilities and threats within their customers' endpoints, data centers, and cloud environments
Infocyte's team and partner ecosystem help organizations maintain compliance, stop ransomware and account takeover, reduce risk, optimize security operations, and scale security teams
Prior to its acquisition by Datto, Infocyte was formed and operated with the support of LiveOak Venture Partners, Toba Capital and other private investors, having raised $12.7 million in venture capital
All 27 Infocyte employees joined Datto as part of the transaction

Transaction Significance

With this acquisition, Datto will extend its security capabilities that protect, detect, and respond to cyberthreats found within endpoints, data centers, and cloud environments
The transaction allows Datto to combine the power of their Datto RMM platform with Infocyte's patented technology, further securing endpoints and fortifying the first line of defense for MSPs
The acquisition is part of Datto's intensifying emphasis on security amid skyrocketing threat activity and sharply rising sales of security products and services, with MSPs now "squarely in the security business"
Datto will integrate Infocyte's technology into its RMM platform to further secure endpoints and develop rapidly expanding MSP-delivered security offerings
The deal enables Datto's MSP partners to have more ways to protect and collect revenue from customers, with technology going into both core RMM and new security offerings
Infocyte's offerings are complementary to Datto RMM Ransomware Detection and SaaS Defense application security products within the critical Protect, Detect, and Respond stages outlined in the NIST organizational security framework
The acquisition counters competitive moves by Barracuda (Skout acquisition), ConnectWise (Perch Security), and Kaseya (RocketCyber) in the MSP security market

Momentum Cyber's Role

If you’re navigating a critical inflection point in cybersecurity growth, M&A, or capital strategy, Momentum Cyber brings unmatched sector expertise and senior-level advisory to every engagement. Let us advise you today and help you maximize value with confidence in an increasingly complex cyber landscape.