Kaseya Wins $500 Million In Funding, Targets Additional Acquisitions

‘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,’ the company says.

IT management platform developer Kaseya has secured $500 million in funding from multiple funds at private equity firm TPG Capital, financing the company said it planned to use to build on the growth it experienced in 2018.

“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,” the company said in a statement Friday.

Kaseya CEO Fred Voccola was unavailable for additional comment, the company said.

Three of the TPG funds behind the half-billion-dollar investment are: TPG Growth, TPG Tech Adjacencies (TTAD), and TPG Sixth Street Partners (TSSP), according to the statement. The Kaseya statement did not say whether other TPG funds were involved.

“We are very excited about our investment in Kaseya’s future growth,” Nehal Raj, a partner at TPG, said in a statement. “Kaseya is a leading player in today’s rapidly growing IT infrastructure management market, offering best-in-class, integrated technology at a compelling price point. The company’s innovative products, skilled management team, and strong customer base position them well for continued success, and we look forward to working together to build and enhance the platform.”

Dublin, Ireland-based Kaseya is owned by Insight Venture Partners, which bought the company in 2013 and installed former CEO Yogesh Gupta. The TPG investment brings Kaseya’s valuation to $1.75 billion, the company said in a statement.

Kaseya said that over the past six years it has made ten acquisitions and the additional funding will likely accelerate that activity.

“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 company said. “The managed services market is expected to grow from $180 billion currently to $282 billion by 2023, a compounded annualized growth rate of 9.3 percent, according to research firm MarketsandMarkets.”

Kaseya partners quoted in the statement said they believe the company will use the cash to accelerate its mergers and acquisition activity.

“We’re excited about what this investment means for Kaseya’s ability to continue to innovate offerings and to expand their acquisition strategy. Kaseya’s acquisition targets to-date have been aligned with the needs of our organization and have been well-adopted here,” Dan Shapero, president of partner TeamLogic, said in a statement.

“We have confidence in Kaseya’s ability to identify acquisition targets that help the TeamLogic IT network grow profitably, and we place great value in Kaseya’s integrated platform for serving the evolving needs of the MSP,” Shapero said. “I look forward to how IT Complete will continue to innovate and expand to help us grow our business and support both our franchise owners and their customers.”