(Bloomberg) -- Datto Inc., a developer of cloud-based data backup software, is moving ahead with an initial public offering that could come as early as this year, according to people familiar with the matter.
Datto, which is owned by Vista Equity Partners, is trying to decide whether it should list its shares this year or in 2021, the people said, asking not to be identified because the matter is private. The company has filed confidentially for an initial public offering in which it could be valued at more than $1 billion, the people said.
The company has hired Morgan Stanley, Bank of America Corp., Barclays Plc and Credit Suisse Group AG as underwriters on the proposed offering, they said.
The company's plans aren't final and could still change. Representatives for Vista, Morgan Stanley, Bank of America, Barclays and Credit Suisse declined to comment. A representative for Datto couldn't immediately be reached.
The Norwalk, Connecticut-based company has been weighing the pandemic's effect on its business, which relies on small to mid-size companies to buy its software for security, data recovery and cloud backup.
Many small businesses, a crucial part of the U.S. economy, have been hard hit by the fallout from the coronavirus pandemic and were scrambling for federal dollars early on. Many have had to cut costs, terminate workers or shut down permanently.
Datto would be the latest listing in software, a sector that has become a sweet spot of the U.S. IPO market. The value of software listings doubled in value on a weighted-average basis over the past year. The S&P 500 Index edged up 6.1% during the same period.
The company's confidential IPO filing was reported earlier by Dealreporter.
Datto 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.
Vista is one of the most active private equity investors in technology and software, managing more than $57 billion in assets.
Another Vista-backed company, Jamf Holding Corp., which develops management software for Apple Inc. products, is planning to go public later this month.
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