Our Finance Group helps clients navigate the business and legal complexities of novel and multidimensional debt financing transactions. We fully understand the challenges faced by borrowers, investors and lenders throughout a company’s lifecycle, from evolving techniques in acquisition finance to the tensions inherent in distressed situations. We are the firm of choice for the most innovative and complex financing matters, including bespoke structured financings and whole-business securitizations of novel assets and restructurings of multibillion-dollar companies.
Kaseya Completes $6.2 Billion Acquisition of Datto
- Client News
- June 23, 2022
Paul, Weiss advised Insight Partners and its portfolio company Kaseya, a premier provider of unified IT management and security software for managed service providers (MSPs) and small to medium-sized businesses (SMBs), on the financing aspects of Kaseya's $6.2 billion acquisition of Datto, a leading global provider of security and cloud-based software solutions purpose-built for MSPs. The all-cash transaction was sponsored by an equity consortium led by Insight Partners, with significant investment from TPG Capital and Temasek, and participation from notable financing sources and investors, including Golub Capital, Blackstone Credit, Ares, Owl Rock, Oak Hill, Carlyle Global Credit and Sixth Street.
The debt financing for the acquisition consisted of $3.7 billion of senior secured commitments in the aggregate, including an initial term loan facility for $3.3 billion, a revolving credit facility for $200 million and a delayed draw term loan facility for $200 million. Preferred equity financing was obtained in the amount of $1 billion issued by an indirect parent of the borrower to certain investors. With the completion of the transaction, Datto’s stock ceased trading and the company is no longer listed on any public market.
The Paul, Weiss team included corporate partner David Tarr and counsel Joseph Friedman; tax partner Brian Krause and counsel Kevin Colan; intellectual property partner Claudine Meredith-Goujon; executive compensation partner Jarrett Hoffman; environmental counsel William O’Brien; real estate partner Salvatore Gogliormella; and international trade counsel Richard Elliott.