Datto is planning a $15 million expansion project for its global headquarters to accommodate at least 100 new jobs in the area.
Datto founder and CEO Austin McChord.
Data backup and disaster recovery (BDR) and business continuity provider Datto is planning a $15 million expansion project for its global headquarters to accommodate at least 100 new jobs in the area.
The Connecticut State Bond Commission last week voted to approve state funding for the expansion of Datto's current headquarters located at Merritt 7 office park in Norfolk, Conn.
As part of the deal, the Connecticut Department of Economic and Community Development (DECD) will provide $6 million in state funding, consisting of a low-interest loan and a grant-in-aid.
This state aid will be used for construction, leasehold improvements, and the purchase of machinery and equipment.
"Companies like Datto are developing the new products, technologies, patents and high-wage STEM jobs that are keeping our economy competitive," Connecticut Governor Dannel Malloy said in a statement.
In addition, 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.
Additional benefits are available to Datto if the company reaches the following job milestones:
- If it retains 150 full-time jobs and creates 100 full-time jobs within two years, it's eligible for $2.5 million in loan forgiveness
- If Datto creates a total of 250 new jobs within three years, it will qualify for a grant of $1 million.
- The grant grows to $2 million if Datto creates a total of 350 new jobs within five years.
- DECD will also provide a $5,000 job training grant for the company's first 200 new hires.
"To receive such support from the State of Connecticut is incredible for the company and for a Connecticut native like myself," Datto founder and CEO Austin McChord said in a written statement.