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Zimbra Acquisition Makes Synacor the ISP Email Solutions Market Leader

August 20, 2015

For nearly 20 years Synacor has been developing white label solutions for the enterprise. From providing Internet, video and communications to the enterprise, Synacor has you covered. And, an announcement this week added a little more bulk to its portfolio of offerings. It has agreed to acquire Zimbra, a provider of open source messaging and email software.

The acquisition makes Synacor a clear market leader for ISP email solutions in the United States. Synacor CEO Himesh Bhise noted, “Email has been and continues to be important to our Internet service provider customers, and has been a double-digit growth business for Synacor this year, driving portal traffic and monetization…We now have an even more compelling value proposition offering Zimbra's on-premise technology as well as Synacor's managed service solutions and advertising products."

With the addition of Zimbra, Synacor will be providing for over 120 service providers, over 2,500 small businesses, more than 900 government customers as well as over 1,000 resellers and 500+ hosting partners around the world.

The deal is expected to find closure in the next 45 days, and is valued at around $24.5 million. Synacor will be paying $17.3 million in cash, with the remainder coming from stocks.

“We are delighted to welcome the global Zimbra team of 140 people to the Synacor family," said Synacor CEO Himesh Bhise. "Together, we will deliver great experiences to hundreds of millions of email users across 135+ countries. We will invest in Zimbra's worldwide distribution platform of 1000+ value-added resellers and 500+ hosting providers to explore international growth for Synacor's portal, video and advertising products."

The enterprise communications space is certainly a competitive one, leaving those sitting on their laurels to wither away while those continuing to innovative and augment offerings get to reap the spoils. Synacor made a statement with this week’s announcement, but only time will how this story ends.

Edited by Dominick Sorrentino

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