Software provider Datto Holding Corp. ($MSP) went public on the New York Stock Exchange Wednesday at $27 per share, the top-end of its target IPO range.
The stock popped out of the gate but has since leveled off throughout the afternoon.
The Norwalk, Connecticut-based company's unusual ticker symbol is meant to stand for "managed service providers," which make up Datto's main clients and partners.
"These are the first responders of any IT disaster, and they're the ones that make all the technology work for the engine that powers America's economy," founder Austin McChord told Cheddar.
Datto offers cloud-based and cybersecurity solutions to managed service providers, who in turn provide for the technology needs of most small and midsize companies.
These providers pay Datto a subscription fee of, on average, $30,000 per year.
"Small-medium businesses want the same mission-critical technology that enterprises do," CEO Tim Weller said. "So the themes you see in tech every day — the shift to cloud, remote work, security — all of these things are coming rapidly to small and medium businesses, and we believe will be delivered by managed service providers."
He added that the IPO will not change the company's basic business model.
"The amazing thing is we're still doing what we've done for the last 10 years," Weller said. "We create technology for small-medium business. We partner with this large global community of managed service providers, and we put it out into the field as subscription revenue."
McCord noted that if anything the offering will help raise awareness of the technology needs of small and midsize businesses, which have been devastated by the coronavirus pandemic.
The former chief executive of Japanese beverage giant Suntory has acknowledged he was investigated on suspicion of possessing an illegal drug but has asserted his innocence despite resigning from his position.
Kellie Romack, Chief Digital Innovation Officer at ServiceNow, reveals the company’s latest announcement and how it’s shaping the future of work and tech.
Raina Moskowitz, CEO of The Knot Worldwide, unpacks the 2025 Global Wedding Report, from Gen Z trends to how Taylor Swift's wedding could reshape the industry.
Nestlé has dismissed its CEO Laurent Freixe after an investigation into an undisclosed relationship with a direct subordinate. The company announced on Monday that the dismissal was effective immediately. An investigation found that Freixe violated Nestlé’s code of conduct. He had been CEO for a year. Philipp Navratil, a longtime Nestlé executive, will replace him. Chairman Paul Bulcke stated that the decision was necessary to uphold the company’s values and governance. Navratil began his career with Nestlé in 2001 and has held various roles, including CEO of Nestlé's Nespresso division since 2024.
