Firm hacked in $70M ransomware attack purchases CT computer securities company | #malware | #ransomware

NORWALK — Datto is being acquired for $6.2 billion by a Miami company, just 15 years after its launch by Austin McChord and rocket growth to join the exclusive club of “unicorn” startups in Connecticut valued above $1 billion.

Datto has its main office in Norwalk under CEO Tim Weller. McChord stepped down in 2018 in advance of Datto becoming a publicly traded company. Miami-based Kaseya is offering $35.50 for each share of Datto, which traded at $28.73 on Friday.

McChord created a company providing data backup as a service for clients lacking the resources of major corporations, allowing them to retrieve information and files in the event of crashes or hacks. Datto sells its backup and security offerings through other companies that provide a range of information technology services.

Founded in 2000, Keyasa also provides security software through managed service providers. In a prepared statement, CEO Fred Voccola indicated the company has a history of retaining the branding and workplace cultures of the businesses it acquires.

Keyasa is funding the transaction with cash from Insight Partners, TPG Capital and other private equity investment firms.

Hackers successfully infiltrated Keyasa’s own systems last year in a ransomware attack, demanding $70 million to restore access to computers. Authorities arrested multiple people in Ukraine and Romania last year on suspicion of orchestrating the attack through the REVil organized crime group. The U.S. Department of Justice said it recovered $6.1 million that had been paid by multiple victims.

Datto has made security a cornerstone of its marketing to smaller businesses that lack the ability to maintain sophisticated IT departments to keep up with the array of threats.

Speaking in February on a conference call, Weller said Datto’s Ransomware Detection suite is now used by some 1.7 million entities to identify potential incursions.

Original Source link

Leave a Reply

Your email address will not be published.

forty nine − = 43