Kaseya has raised more than $500 million in a massive funding round that has valued the company at $1.75 billion. The funding round was supported by TPG and Insight Partners.
During 2018 the company grew at an impressive rate of 30% and now has around 40,000 customers worldwide, according to its press release. It may have even more than this. Over the last year it has announced the successful integration of acquisitions such as Unitrends, Spanning Cloud Apps, RapidFire Tools, and IT Glue. However, there is at least one it has yet to announce, Pulseway and potentially even more that it has a significant shareholding in, but has chosen not to publicise.
Fred Voccola, CEO of Kaseya commented: “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. 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.”
The press release cited three areas where Kaseya will spend the money:
- More acquisitions
- International expansion
- Product R&D
Enterprise Times : What does this mean
According to MarketandMarkets the managed services market is expected to grow from $180 billion currently, to $282 billion by 2023, at a compounded annualized growth rate of 9.3 percent. Kaseya is aiming to capture a big share of that market. It will not be without competition, Thoma Bravo recently invested in ConnectWise, Ivanti is also in PE ownership. This is a massive war chest. Does Kaseya have a significant target in mind? How far away is an IPO?