Vista-backed IT 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, 2020. It plans to list on the NYSE under the symbol MSP. Morgan Stanley, BofA Securities, Barclays, Credit Suisse, Citi, Jefferies, RBC Capital Markets, Evercore ISI, BMO Capital Markets and Macquarie Capital are the joint bookrunners on the deal. It is expected to price the week of October 19, 2020.

The article Vista-backed IT software provider Datto sets terms for $561 million IPO originally appeared on IPO investment manager Renaissance Capital’s web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital’s research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital’s Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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EU watchdog sets out software capital relief for banks

LONDON (Reuters) – The safety buffers of banks in the European Union would swell by billions of euros under proposed rules that allow lenders to include the value of software investments like cybersecurity in capital calculations.

Currently a bank must deduct the value of software from its capital buffer upfront, adding 36 basis points to its core ratio or mandatory measure of stability.

The European Banking Authority (EBA) said banks will be allowed to “amortise” or taper the value of software for capital purposes over three years.

That would boost capital by about 20.2 billion euros in 2020 across a sample of 64 banks, and by 20 billion euros in 2021, it said.

“The proposed approach is designed to be simple to implement and applicable to all institutions in a standardised manner, as is the case today with the deduction treatment,” the EBA said in a statement on Wednesday.

EU policymakers had already agreed to soften the rule to help banks keep lending to pandemic-hit businesses, and the European Commission is expected to rubberstamp the EBA’s proposals for introduction this year.

It marks a big win for banks who have long argued that current rules put them off updating cybersecurity systems and innovating in digital services for customers.

“The existing approach also distorts the global playing field, particularly when compared to the U.S., where banks can treat software investments as tangible assets that do not have to be deducted from a bank’s capital ratio,” the European Banking Federation said in a statement.

The EBA told EU lawmakers last year to avoid hasty changes, saying software was likely to be worthless when a bank goes bust as it could not be sold separately.

UK regulators have spoken against including the value of software investments in capital ratios, noting numerous high profile

McAfee Sets Terms of IPO, Hoping to Raise Up to $682 Million

McAfee, the cybersecurity company founded by tech eccentric John McAfee, has set the terms for its initial public offering, hoping to raise as much as $682 million in a deal that could value the company at $3.64 billion.

McAfee, based in San Jose, plans to sell 37 million shares at a price of $19 to $22 each. The stock will trade on Nasdaq, with the ticker symbol MCFE, the company said in an SEC filing.

Of the 37 million shares, 30,982,558 will come from the company and 6,017,442 from existing stockholders. McAfee expects to have 165.44 million Class A shares outstanding after the IPO.

In the six months through June 27, McAfee posted profit of $31 million, swinging from a loss of $146 million in the year-earlier period. Revenue rose 9% to $1.4 billion from $1.29 billion.

John McAfee founded McAfee Associates in 1987 and ran it until 1994, when he left the company.

McAfee’s anti-virus software was a market leader along with Norton in the 1990s and 2000s. It sold itself to Intel INTC for $7.7 billion in 2011.

In 2016, Intel sold a 51% stake to the San Francisco private-equity firm TPG for $1.1 billion. In its IPO prospectus, McAfee cites TPG and Chicago PE firm Thoma Bravo as investors.

After leaving McAfee Associates, John McAfee founded a raft of companies, including Tribal Voice, which offers the PowWow chat program; QuorumEx and Future Tense Central. 

In 2016 he sought the Libertarian Party nomination for president, losing to former New Mexico Gov. Gary Johnson. He gave it another shot this year, to no avail.

McAfee was arrested last week in Spain and is facing extradition to the U.S. on tax evasion charges. In a statement announcing the charges, the Department of Justice noted “The indictment does not allege that

Insane Catch From Raiders’ Henry Ruggs Sets Internet on Fire

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Las Vegas Raiders WR Henry Ruggs.

Since the Henry Ruggs has missed the last two games for the Las Vegas Raiders due to injury, the offense hasn’t looked as dynamic. He finally made his return against the Kansas City Chiefs and it didn’t take long for him to make his impact known. One the Raiders’ first drive, he caught a wild 46-yard bomb from Derek Carr.

Everybody talks about Ruggs’ speed but he’s also got some great hands. The Raiders have needed a consistent number one wide receiver and Ruggs will be that guy if he can keep making circus catches. He’s already proving to be a dynamic playmaker for the silver and black.

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Internet Goes Wild Over Catch

Due to his injury, Ruggs hasn’t had much of a chance to make big plays yet. He’s been outshined by the other wide receivers in the 2020 draft class. However, he made it very clear to the world that he’s just as good as those other guys. The internet was stunned by Ruggs’ crazy catch.


Derek Carr Happy to Have Ruggs Back

There’s probably nobody

Apple Sets Oct. 13 Online Event, Could Unveil New iPhone

Apple  (AAPL) – Get Report said it would hold an online event on Oct. 13, and industry watchers expect the tech company to unveil the latest iterations of its ubiquitous iPhone.

Four models of the iPhone 12 are expected to be announced at the event, according to Apple Insider. The iPhone 12, iPhone 12 Max, iPhone 12 Pro and iPhone 12 Pro Max are all expected to debut. 

The new iPhone is expected to be 5G-enabled. The models would arrive just a month after Apple’s September event, where it introduced new hardware and subscription bundles. 

The standard models are expected to have 5.4-inch and 6.1-inch OLED displays, while the Pro versions are expected to have 6.1-inch and 6.7-inch versions. 

The standard models will have two 12-megapixel cameras, according to Apple Insider, while the pro model adds a third camera on the back for telephoto shooting. 

Speculation on the pricing for the models starts at $649 for the smallest non-pro model and rising to $749 for the bigger version. Meanwhile the small Pro is expected to launch at $999 while the Max Pro could start at $1,099.

Last month, Goldman Sachs published a bearish note on Apple, saying that the “The iPhone is a very tough act to follow,” and Apple’s services and wearables businesses are “not likely to be large enough to return the company to growth.” 

The analyst, Rod Hall, said that while the company and his team “are not permanent bears” on the stock, “we simply would like to see a consistent string of beat-and-raise quarters from Apple that match the growth narrative.”

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