The Autotask acquisition betting pool is closed, and unless you were holding Vista Equity Partners as the buyer, you lost.
At Autotask Community Live yesterday morning US time in Miami, the vendor's CEO Mark Cattini announced a deal in which the private equity firm would take control of the leading professional services automation software vendor for an undisclosed amount.
"This announcement reflects our deep commitment to accelerate the value we deliver to our customers," said Cattini in a statement.
No details were released on how the acquisition will affect Autotask or its thousands of MSP users around the world. Much of the proceeds will probably go toward reinvestment and paying out existing investors, which include JMI Equity, North Atlantic Capital and Hamilton Lane.
Under Cattini's leadership, Autotask has pursued an international expansion plan, as well as growth of its domestic base of MSPs. Headquartered in Greenbush, New York, the company has offices in Europe, Australia and China. It recently opened a satellite office in Chicago.
"Autotask has a long history of dedicating itself to customer-centric solutions and has built a strong foundation for sustained, long-term growth," said Vista principal Alan Cline.
The channel rumour mill has been churning with speculation that Autotask would be acquired some time this summer. The leading bets had Autotask paired with a remote monitoring and management (RMM) vendor to counter the strengths of rival ConnectWise and its subsidiary, LabTech Software.
As late as last night US time, industry insiders were betting on an RMM vendor making the deal.
The Autotask acquisition is the latest in a series of mergers, acquisitions and buyouts to roll over the managed services segment. This time last year, SolarWinds bought N-able, AVG Technologies bought Level Platforms, Kaseya was acquired by a venture capital firm, and PacketTrap (a Dell unit) was shut down.
All this activity is happening amid a backdrop of a slowing managed services market; multiple research reports - including those by Channelnomics parent the 2112 Group - show managed services growth slowing and profitability falling.
Vendors such as Autotask have dismissed such reports, saying the core of the managed services market remains strong and still has room for growth.
For more US-focused channel coverage see www.channelnomics.com
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