How Dyn Was Able to Acquire Verelo Before It Shut Down

Last month, Canadian startup Verelo announced it was shutting down and returning all remaing funds to investors. But this month, Dyn swept in and acquired the Toronto-based company.

How it came about that acquisiton is a rather interesting and unique story. Turns out, a customer of both companies noticed Verelo was shutting down and decided to email Jeremy Hitchcock, the chief executive officer of Dyn, according to ITBusiness.

That customer was Jack Templin, the cofounder of Lockify. He told Jeremy it sucked Verelo was shutting down instead of being acquired by a company like Dyn since the two seemed like such a good fit together. As it happened, Jeremy agreed.

The Dyn CEO reached out to Andrew McGrath, the cofounder of Verelo. Naturally, Andrew welcomed a buyer. It was a small deal from what we hear (financial terms weren’t disclosed) but it was enough for Andrew to repay his investors.

Dyn says that it does not intend on selling the Verelo services long term and instead will offer its performance-orientated tools as a free service to their customers and as a sales tool for prospects.

“Our mantra is ‘Uptime is the Bottom Line’ so we are always looking for great opportunities to prevent downtime,” explained Jeremy Hitchcock. “Acquiring Verelo allows us to offer more innovative services to our customers. We don’t want to just fix downtime. We want to prevent it.”

Verelo’s monitoring services allows customers to check their websites from multiple locations around the world. If downtime, database connection errors or other problems are detected, customers are notified by SMS, phone or email. Such immediacy can help prevent future problems, something Jeremy Hitchcock says he saw great value in.

Verelo, founded in early 2012, launched publicly in June after graduating from Toronto’s Extreme Startups accelerator program.

“This is great news for Verelo as it means our service will continue long into the future,” said McGrath, the startup’s CEO, of the acquisition this week. “Dyn will bring a much larger set of resources to our current and future users.”