Datto Buys Open Mesh to Build Out Networking Business

New England data-protection firm Datto is pushing deeper into IT networking technologies with the acquisition of Open Mesh. Terms of the deal weren’t disclosed in Tuesday’s announcement.

Open Mesh makes hardware and cloud-based software that it says enables IT professionals to implement secure wireless networks more quickly and cheaply than traditional networks.

Open Mesh will operate as a Datto subsidiary and will keep its headquarters in Portland, OR. Its 28 employees will join Norwalk, CT-based Datto, which has around 700 employees, including 85 in Boston, a spokeswoman says.

“Open Mesh’s team, solutions, and commitment to the channel make it a perfect fit for Datto as we continue to expand our offerings to cover the spectrum of data availability and connectivity, which starts with a company’s network,” said Datto CEO and founder Austin McChord in a press release.

Open Mesh got started in 2005, and there are no public records of it raising venture capital, per a search of SEC filings and Crunchbase. Datto, on the other hand, has raised $100 million from TCV, General Catalyst Partners, and other investors.

This is the second acquisition for 10-year-old Datto. The company scooped up Cambridge, MA-based Backupify in 2014 for an undisclosed price. As Xconomy previously reported, the goal with that deal was to build a set of “total data protection” products—software that backs up and recovers business data across the cloud, on-premise systems, and business apps.

Meanwhile, Datto began moving into networking products in 2015. That year, it announced a networking device that involves routing hardware and software, and is aimed at helping businesses stay connected and manage their networks through the cloud.

The Open Mesh deal advances those efforts. With the addition of Open Mesh’s Ethernet switching and access point technologies, Datto says it will now offer a line of networking products tailored to the needs of small- and medium-sized businesses.

“The most critical aspects of work are moving to online applications and mobile devices, which means any lapse in connectivity can result in instant negative impact on the business,” Open Mesh founder Michael Burmeister-Brown said in a press release. “We found a partner with a common vision in Datto, and we embrace the opportunity to bring networking solutions to our shared customer base around the world.”

Datto isn’t the only enterprise IT company fusing data storage and networking. Another example is Boston-based ClearSky Data, which offers a new type of storage network service, as Xconomy previously reported.

Datto competes in the storage and backup market with Dell EMC, Carbonite, Box, and others.

Jeff Engel is a senior editor at Xconomy. Email: jengel@xconomy.com Follow @JeffEngelXcon

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