(Bloomberg) -- Datto Holding Corp., a developer of cloud-based data backup software, raised $594 million in an initial public offering priced at the top end of a marketed range.
The company sold 22 million shares on Tuesday for $27 each, according to a statement. Datto had marketed the shares for $24 to $27 apiece.
Datto, which is backed by Vista Equity Partners, is going public as a wave of software IPOs this year appears to have crested. Software companies have accounted for about 11% of the more than $124 billion raised this year on U.S. exchanges, according to data compiled by Bloomberg. Datto's listing comes a day before one by McAfee Corp., which is seeking to raise $814 million.
The value of software listings this year has climbed 88% on a weighted-average basis. The S&P 500 Index edged up 6.6% during the same period.
Norwalk, Connecticut-based Datto relies on small to midsize companies to buy its software for security, data recovery and cloud backup. The company was founded in 2007, according to its website. It acquired smaller rivals Backupify in 2014 and Open Mesh in 2017. It was acquired by Vista later that year and was merged with New York-based Autotask.
Datto's offering is being led by Morgan Stanley, Bank of America Corp., Barclays Plc and Credit Suisse Group AG. The shares are expected to begin trading Wednesday on the New York Stock Exchange under the symbol MSP.
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