Infocyte cybersecurity startup acquired by Datto

By Iris Gonzalez
The Datto and Infocyte teams celebrate the news of Datto's acqusition of Infocyte, courtesy photo

Infocyte, a cybersecurity startup created by U.S. Air Force veterans in San Antonio, has been acquired by Datto, the world’s leading provider of cloud-based software and technology solutions for delivery by Managed Service Providers (MSPs). Infocyte is a cybersecurity startup specializing in managed detection and response (MDR) tools that detect and prevent cybersecurity threats evading an enterprise’s organizational security controls.

Datto, Inc. is a cybersecurity and data backup company founded in 2007 in Norwalk, CT. They purchased Infocyte to bolster its ability to protect, detect, and respond to cyber threats found within a client company’s endpoints and cloud environments. Infocyte’s patented technologies continuously collect and correlate data to identify potential cyber threats so that specialized security analysts in a Security Operations Center (SOC) can respond in real-time to escalated cyberthreats.

Terms for the acquisition deal, which closed last week, were undisclosed in Thursday’s announcement.

“The addition of the Infocyte team and technologies augments our capabilities,” stated Tim Weller, Datto’s CEO. “Today, we welcome the Infocyte team, who will join us in developing our rapidly expanding set of MSP-delivered security offerings. MSPs are squarely in the security business, so Datto continues to make security a top investment focus.”

Infocyte’s technology will help protect the computers and servers of Datto’s 18,000 MSP clients once it’s layered on top of Datto’s remote monitoring and management platform that locates, updates, and monitors client endpoints, according to Weller.

Curtis Hutcheson is Infocyte’s second CEO after co-founder Chris Gerritz, now chief product officer, stepped aside from that role. Gerritz and Ryan (Russ) Morris launched the cybersecurity startup in 2014 out of Geekdom, a co-working community located in San Antonio’s downtown. Gerritz and Morris were leaders within the U.S. Air Force Cyber Emergency Response Team (AFCERT) while on active duty. They leveraged their specialized military experience to build a cybersecurity product to protect private sector enterprises.

In addition to Infocyte’s security technology, the company has analysts in a SOC who can respond in real-time to escalated cyberthreats.

“With Datto, we will get the immediate benefits of additional investment, global scale, and broader market reach through their 18,000-plus Managed Service Provider Partners,” Hutcheson said.  “We also get the benefit of selling a broader solution with all the complementary Datto services tied together.   Overall, it is a great outcome for our investors, employees, partners, and customers.”

Infocyte moved to Austin in 2018. They closed a $5.2 million funding round in 2018 when Hutcheson joined the company as CEO. According to Hutcheson, the company’s Series A funding round in 2017 was led by LiveOak Venture Partners, while Toba Capital led its Series B round in 2018. He said the startup had raised roughly $12 million over multiple rounds of outside funding.

At press time, Infocyte has 27 employees who will continue to work for Datto. Infocyte brings over a hundred subscribers of their platform to the table and will focus on growth as part of the Datto team.

“We have recruited a deep security partner base and are looking to expand upon our SOC, both by enlarging the facility and hiring more experts to staff it,” Hutcheson said.

After 10 years of military service, Gerritz embraced the entrepreneur life and found support from the San Antonio ecosystem as the founders built their cybersecurity startup.

“We have gone thru the entire startup lifecycle, starting from two people in a tiny office at Geekdom to today’s acquisition,” Gerritz said. “The business community in San Antonio was instrumental in providing us mentorship and encouragement. This is our opportunity to take what we’ve been doing and grow it to a massive scale.”

Given Datto’s edge as a leading global provider of cloud-based software and technology solutions purpose-built for delivery by managed service providers, the acquisition signals opportunities for expansion.

“This acquisition is a great fit for our companies,” Hutcheson said. “We look forward to helping Datto become a major security player in the industry.”

The featured image is of the Datto and Infocyte teams celebrating the news of Datto’s acquisition of Infocyte, courtesy photo.

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