Vista-backed business software provider Datto sets terms for $561 million IPO

Datto Holding, which sells a hybrid IT infrastructure platform to managed service providers, announced terms for its IPO on Wednesday.

The Norwalk, CT-based company plans to raise $561 million by offering 22 million shares at a price range of $24 to $27. New investors Investment Group of Santa Barbara and Dragoneer Investment Group intend to purchase $112 million worth of shares in the offering. At the midpoint of the proposed range, Datto Holding would command a fully diluted market value of $4.2 billion.

Datto is the leading provider of cloud-based software and technology solutions purpose-built for delivery through the managed service provider (MSP) channel to small and medium businesses. The company’s cloud-based platform offerings include Unified Continuity, Networking, and Business Management software solutions and it currently serves 17,000 MSP partners.

Datto Holding was founded in 2007 and booked $493 million in revenue for the 12 months ended June 30,

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M&T Bank: A Cheap Valuation Sets Up The Stock To Bounce After Third Quarter Earnings (NYSE:MTB)

Investment Thesis

Headquartered in Buffalo, New York, M&T Bank Corporation (MTB) is a $140 billion asset holding company and parent to M&T Bank. MTB has offices located throughout the Northeastern United States. Specifically, the bank has 785 branches located in Connecticut, Delaware, Maryland, New Jersey, New York, Pennsylvania, Virginia, and a few other states.

While MTB is more of your classical “loans and deposits” type community banks, relative to super regional peers, it does have a strong wealth management presence associated with its Wilmington Trust business. While most other banks focus on growth first, I believe MTB is more focused on sound credit quality above all else. As one can see from the charts below (under “Credit Analysis”), the bank did quite well during the last recession in terms of credit pain.

As one can see from the valuation chart below, the current valuation (in terms of Price to Tangible

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