If you haven’t heard of 12-year-old infrastructure as a service company Dyn, it’s because the company has quietly bootstrapped itself from Manchester, New Hampshire for the majority of its existence. And then, seemingly out of nowhere, the company last fall raised a $38 million Series A (North Bridge Venture Partners led the deal). Dyn’s infrastructure as a service product powers the managed DNS, traffic management, email deliver and reporting for four million users that range from enterprise to small businesses and individuals.
Even though Dyn got its start in 2001, the company’s growth didn’t really kick growth into high gear until 2009, when Kyle York joined as Chief Revenue Officer. That year, the company did $3 million in revenue. In 2012, it did $30 million. This year the company is on track to do around $50 million in sales. Dyn has grown to 200 employees in New Hampshire and 30 outside of it. The company has also acquired five companies since 2010 — EveryDNS, EditDNS, SendLabs, TZO and Verleo. Today it announces another acquisition of a company. This one it knows well.
Today Dyn announced the acquisition of Trendslide, a data aggregation tool built for iOS devices which Nathaniel Mott profiled last year. The company was actually developed inside Dyn before it was spun out. Dyn’s CTO Cory von Wallenstein and other Dyn execs invested $100,000 in Trendslide when it spun out, York sat on the company’s board.
Dyn’s decision to repurchase a company that it could have just kept in-house all along seems a bit silly — sortof like when Twitter got into a bidding war over Tweetdeck, a company that built tools onto its own platform. But Trendslide, when it spun out, was focused in a different area. The company had gone after opportunities in the sales and marketing industries rather than Infrastructure as a service.
Dyn realized that its clients wanted its clients to have access to their realtime monitoring dashboards on their mobile devices. It wasn’t apparent that Trendslide’s mobile sales and marketing tools would fill that hole until investors pointed it out, York said. Dyn could have built the capabilities as well, but acquiring Trendslide’s technology and repurposing it would be much faster. The deal terms weren’t disclosed. Ron Martin, CEO of Trendslide, called the deal “the sensible move.”
Infrastructure as a service is a nuts-and-bolts category of tech companies that’s benefitted from the proliferation of software in every industry. As is clear when Amazon’s cloud services go down and it feels like half of the Internet has disappeared, uptime is as important with consumer-facing services as it is with enterprises. With Dyn’s acquisition of Trendslide, the company’s four million clients will now be able to monitor their web properties from mobile devices.