What happened
The share price of Datto Holdings (MSP +0.00%), a security and cloud-based software solutions company, skyrocketed this morning after the company announced that it will be acquired by Kaseya, an IT management and security company.
The tech stock was up by 20.9% as of 11:58 a.m. ET.
So what
Datto's management said in a press release that it had entered into an agreement to sell the company to Kaseya in a $6.2 billion all-cash deal. Existing Datto shareholders will receive $35.50 per share as part of the transaction.
Image source: Getty Images.
Kaseya's CEO, Fred Voccola, said in a statement that "Datto has a legendary commitment to its customers and employees. The alignment of our missions and focus makes us a natural fit, that will help our greatly appreciated customers reach new levels of success."
And Datto's CEO Tim Weller said that combining the two companies "brings together a broader array of technology products to create additional opportunities" for customers.
NYSE: MSP
Key Data Points
The two companies said that the deal is expected to close in the second half of 2022, pending regulatory and board approval.
Now what
It's clear that Datto investors are happy about the proposed deal. In this case, investors are likely excited that they'll receive a 52% premium on their Datto shares over the unaffected stock price on March 16.
