Kaseya CEO Gerald Blackie says the company has no debt, no venture capital and absolutely no plans to pursue an initial public offering (IPO). Why stay private in the rapidly expanding managed services market? Blackie provided some thoughts June 1 during a poolside chat with me at the Kaseya User Conference.
When Kaseya launched earlier this decade, the company co-founders made a conscious decision to control their own destiny, self-fund operations and create a “lifestyle business,” said Blackie. By maintaining internal control, Kaseya’s founders Mark Sutherland and Paul Wong reasoned, the company could focus on customers rather than venture capitalists’ demands.
So far, that strategy is proving Kaseya well. Although the company is privately held and does not need to fully disclose its financials, Blackie revealed some financial data points during his conference keynote June 2. The company generated more than $25 million in revenue in 2007, and Blackie expects the business to double in size again in 2008.
But with growth comes challenges. Blackie and Sutherland both conceded that Kaseya 2008 — the company’s major platform upgrade — hit a wall a few months ago because deployments occurred faster than expected and a few unanticipated bugs popped up in the system.
Kaseya has since rolled out hotfixes, and now plans to deliver a comprehensive service pack (containing all of the hotfixes) this summer.
On the business front, Kaseya’s future revenue pipeline (secured under recurring revenue contracts) is approaching $100 million, notes Blackie.
Everybody has a Price
Although Kaseya has no plans to pursue an initial public offering, and the company isn’t up for sale, Blackie says Kaseya has a stock option plan — just in case a potential buyer ever makes the company an offer that’s too good to pass up.
But in the meantime, selling Kaseya isn’t a priority. Concluded Blackie during our poolside chat, “This is a lifestyle business and ultimately we need to be having fun in business.”
So far, so good.
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Tags: CEO Gerald Blackie | Initial Public Offering | IPO | Kaseya User Conference | Managed Service Providers | Managed Services | MSPs
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There may be another reason for Blackie’s decision to keep Kaseya private–and that would be the fraud he and his management team propagated on the public when he ran Platinum Software, back in the early 90’s. Tough thing those nasty rules and regulations that everyone else has to play by. Blackie also bankrupted two other Orange County businesses he ran in the 80’s and left creditors holding the bag. Any company foolish enough to do business with this crook is asking for trouble.
louis: we welcome an open dialog on this site. But you are making some pretty strong accusations without revealing specific facts and details. Plus you are making the statements without disclosing your full identity. Again we welcome a dialog on this site but if you r going to take shots at executives don’t do it from the shadows.
Don’t be so naive. Ever heard of Google?
http://www.sec.gov/litigation/admin/3437185.txt
Louis: There’s a difference between being naive and being slammed with deadlines. When we fail to report something on MSPmentor, we welcome community-based comments, links and and feedback such as yours.
I gave the link a look but I’m running to an event (full disclosure: The event is hosted by Kaseya). I will give the document a closer read later today.
In the meantime, we welcome constructive criticism. But please don’t call me naive.
Ok, Joe. How about “lazy.”
Louis: So, I’m lazy after getting off a 24-hour flight from Australia and blogging 15 consecutive days across four web sites?
Feel free to read and comment on MSPmentor, but don’t ever call me lazy as I work 24×7 to drive new content and interact with our readers.
Joe-
I just came across this column. Mr Blackie is a very charming and intelligent gentleman. He also has some special talents for sensing coming market trends. I must tell you, however, that his past business ventures have left many folks reeling. Alerio Corporation, which was to have delivered an industry changing payroll system chewed through 12M of venture capital, too many good people to name, and all there was to show for it was some really nice Aeron chairs. His prior issues with Platinum are a matter of public record. Luis is probably another one of the casualties. Some he keeps around (ie Jim Alves). Others he discards. Feel free to contact me, I would be glad to provide you with citations and verifiable details. I offer this because you fill an important void in our industry, do a great job reporting, and I do not want to see you embarrassed. Suffice to say he (Mr. Blackie) is longer welcome in Sarasota, FL (many, many creditors and ex partners). I would treat any numbers that he provides (revenue, profit, clients) with an abundance of caution. Best, Mike
Mike: I appreciate the note. Feel free to contact me at joe [at] ninelivesmediainc.com. My contact information is available to all readers, and I will always listen to readers who take issue with our approach/coverage. But I will also reach out to Kaseya directly for comment on the statements above. It’s late on the East Coast on Friday. Stay tuned for a follow-up from MSPmentor the week of Feb. 2.
Joe-
Did you ever get a chance to follow up with Mr. Blackie? I have heard some more lately about some of his claims and I really believe that should have some of the facts. I do not have an agenda… just an appreciation for facts!
Take care Joe, hope all is well.
Mike
Hey Mike,
Actually, yes I did reach out to Gerald and Kaseya, and the company replied with an in-depth comment about the alleged situation. We posted the blog back on February 3, 2009. Here it is, for those who missed it.