The early days in 2004, Yossi Hasson was 22 when he launched Synaq, a managed Linux service provider and messaging company, with business partner David Jacobs. The company specialises in Linux and open source (OS) software delivered on a software-as-a-service (SaaS) basis, and targets the SME sector.
“We were seen as a bit too progressive when we started the business,” says Hasson. “We were talking about open source and the cloud when these were still new concepts. Today they are just applications like any other, but we had to work hard to overcome resistance to the technologies.”
Reaping the rewards
That hard work paid off this year when Internet Solutions (IS) acquired a majority stake in Synaq, for an undisclosed sum, highlighting how expertise in a particular area can enable an entrepreneurial business
to stand out from its competitors.
“We’ve had a longstanding relationship with IS and when we were doing some work for them earlier this year, they identified opportunities within our business. We have a specific skills set and technologies that they did not have in-house. They will now be able to provide their SME clients with managed communications services that are well priced for the market because open source software is so much more cost-effective.”
Hasson says the deal will give his company the ability to grow much faster on the back of IS’s infrastructure. “Synaq is now in a better position to expand globally, as IS has invested significant capital into the business. In addition, we can tap into the large global footprint of both IS and its parent company Dimension Data.”
What’s in a name?
A good reputation and a solid foundation are the qualities that attracted IS, Hasson says. “It made sense for the company to acquire a business that has the skills and track record in the provision of Linux and OS services rather than develop them internally, particularly as there is a growing demand for these services right now.”
The upstart matures
Synaq was seen as a bit of an upstart when it launched seven years ago. The founders aimed to provide an affordable, cloud-based messaging infrastructure for SMEs. Now, a deal with IS, which has come on board
as a shareholder, has given the business the backing and support it needs to expand globally.