The deal pairs a boutique PHP outsourcing shop with a startup-focused product studio, revealing how even tiny players shape the open source ecosystem.
An interesting story came out of Canada on Friday about the sale of a small Montreal-based software development shop to TLM, an also small and Quebec-based development company that specializes in building software products for technology startups. The boutique nature of the parties involved brings a peek to a side of the open source economy that’s not often covered by tech media.
The company being sold is SimplyPHP, a company that shops its team of developers out to companies that need help developing PHP-based software projects. PHP is an open source server-side scripting language that’s the driver for many online services. The content management system that served you this FOSS Force article uses PHP, for example.
SimplyPHP’s small team of developers — around 33 according to one estimate — work remotely for companies across the globe to help build applications that have included everything from an electronic data capture system for a pan‑Canadian cancer registry, to multiple client‑facing products in Laravel — a PHP-based web framework for building web apps — and other custom PHP frameworks for a US-based client management company.
Basically, it works like this: SimplyPHP comes in — metaphorically speaking, they work remotely — and builds the system you need, either alongside your own developers if you have any, or on their own. After that, they can either leave it for your people to maintain, or you can put them on retainer to keep it maintained.
They evidently do good work. It’s not difficult to find five-star reviews from satisfied customers online.
SimplyPHP’s New Owner
SimplyPHP was founded in 2010 by co‑founders Tony Capozzi and Raph Leroux. Capozzi likely provided the company’s business acumen — before SimplyPHP he was in business property management, and he lists his employment before that as “latex sales.” Leroux would be the IT guy. He came to the partnership after spending more than five years wearing “many hats” at Mentel Inc, a small Montreal-based web / IT solutions outfit.
Details of the acquisition haven’t been made available. What we know is that Bhaskor Guha, a co-founder of the acquiring company, has been appointed CEO of SimplyPHP. Also, Capozzi and Leroux are remaining involved for “the coming months” to ensure a smooth transition. From a logistics viewpoint, I’m figuring that the acquired company will remain at least somewhat independent and that TLM will steer business its way.
A statement from new CEO Guha seems to support that assessment: “Our goal is for SimplyPHP to continue playing its full role and growing, while we actively support its ongoing development. Together, we will build on the strong foundation already in place and expand the capabilities available to clients.”
SimplyPHP’s co-founder Tony Capozzi issued a statement that was seemingly crafted to reassure existing clients while giving a nudge to digital sovereignty Canada-style: “Choosing new ownership that would continue to serve our clients and support our employees was extremely important to me. I am confident that TLM and Bhaskor’s team will achieve this goal, while preserving the Canadian expertise our clients trust every day.”
There’s another side of the open source ecosystem hidden in this story. I wouldn’t have heard about this small acquisition if Tequity Advisors — a Toronto-based investment firm that brokered the deal — hadn’t put out a “hey, look at what we did” press release, evidently hoping to find another company looking for a buyer.
Christine Hall has been a journalist since 1971. In 2001, she began writing a weekly consumer computer column and started covering Linux and FOSS in 2002 after making the switch to GNU/Linux. Follow her on Twitter: @BrideOfLinux
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