Datto Holding Corp. (NYSE:MSP) shares closed around 20% higher on Monday, following the company’s announcement that it had entered into a definitive agreement to be acquired by Kaseya in an all-cash transaction valued at around $6.2 billion, or $35.50 per share.

The announcement follows a number of recent software transactions and is expected to close in the second half of the year.

Analysts at RBC Capital downgraded the stock to sector perform from outperform and increased their price target to $35.50 from $34 following the announcement. The analysts believe the acquisition price of $35.50 is fair and a 9% premium to the stock's all-time high in November 2020 shortly after the company's IPO.