Gov. Malloy: One of the World’s Fastest-Growing Information Technology Firms to Expand and Create at Least 100 Jobs in Norwalk
(HARTFORD, CT) - Governor Dannel P. Malloy today announced Datto, Inc., one of the fastest-growing information technology firms in the world, is investing in a new global headquarters in Norwalk. The State Bond Commission at its meeting on Friday voted to approve funding to support Datto's efforts to grow its presence in Connecticut by expanding its current space at the Merritt 7 office park and retaining or creating at least 250 jobs for Connecticut residents over the next two years.
"Companies like Datto are developing the new products, technologies, patents and high-wage STEM jobs that are keeping our economy competitive. On our end, we have been making strategic investments in our STEM talent pool and higher education to give these companies access to the engineers, technologists, scientists and inventors at the core of our workforce," said Governor Malloy. "Working together, we will continue to invest in attracting and growing innovative companies and industries that are leading the way in the 21st Century and move our state towards a strong and sustainable economic future."
The Connecticut Department of Economic and Community Development (DECD) will provide $6 million in state funding for Datto's expansion project, which will cost an estimated total of $15 million. The state funding, consisting of a low-interest loan and a grant-in-aid, will be used for construction, leasehold improvements and the purchase of machinery and equipment. Datto anticipates hiring a minimum of 100 high wage employees over the next two years.
"From the very beginning, I've been committed to keeping Datto Connecticut-based and employing the state's best engineers, technicians and workforce overall," said Datto founder and CEO Austin McChord. "To receive such support from the State of Connecticut is incredible for the company and for a Connecticut native like myself. We plan on building Datto into world-class technology vendor, and solidifying our headquarters is the first step."
Subject to State Bond Commission approval, Datto will receive a loan of $5 million at an interest rate of 1 percent for a term of 10 years. Principal payments will be deferred for the first three years. The company is eligible for $2.5 million in loan forgiveness if it retains 150 full-time jobs and creates 100 full-time jobs within two years. Additional forgiveness is possible if the company reaches certain job milestones. If Datto creates a total of 250 new jobs within three years, the company will qualify for a grant of $1 million. The grant grows to $2 million if the company creates a total of 350 new jobs within five years. DECD will also provide a $5,000 job training grant for Datto's first 200 new hires.
"When Datto began to think of expanding their presence in Norwalk, I met with them early on and immediately recognized their value and potential to help our community grow. Governor Malloy and Commissioner Smith have led a sustained effort to support high-tech businesses in Connecticut. I appreciate their support for this Norwalk company, and their commitment to growing these kinds of good paying jobs in our state," said State Senator Bob Duff (D-Norwalk).
"This is great news for Norwalk and for the tech industry in Connecticut," said State Rep. Chris Perone (D-137). "I thank the Bond Commission and Governor Malloy for making this important investment in Norwalk."
"Connecticut is good for business and this announcement is further proof of that," said State Rep. Bruce Morris (D-140). "Datto's decision to build its headquarters in Norwalk will create jobs, strengthen our economy and improve our quality of life. Helping businesses like Datto grow is the kind of economic development we need and I thank Governor Malloy for leading the way."
"Datto is a technology company offering innovation and growth," said State Rep. Terrie Wood (R-141). "Having them in Connecticut is an enormous asset our state."
Datto is a leading vendor of hybrid cloud-based backup, disaster recovery and intelligent business continuity solutions, providing best-in-class technology and support to over 5,000 Managed Service Providers throughout the world, Datto delivers a hardware-based solution that leverages a multitude of the Company's proprietary technologies, including instant local and off-site virtualization, targeted for businesses of all size.
"This is a perfect example of the kind of investment in strategic sectors that we look for," said DECD Commissioner Catherine Smith. "We know that most job creation comes from young, small companies, and Datto is a leader in one of the hottest sectors of the internet and information technology industry."
Datto is ranked 38 on Inc. Magazine's 31st annual '500,' and in September was recognized as the fastest growing technology company in Connecticut at the annual Marcum Tech Top 40 Awards. Datto announced in September 2013 that it has raised $25 million in its first round of venture capital financing.