Mergers and acquisitions continue to be prevalent in the tech industry as companies seek their next steps in a competitive market. This trend impacts not only startups and larger tech companies but also the firms that closely collaborate with them. In the latest development, Canadian company Tiny has acquired HappyFunCorp, a product engineering house known for designing and building apps for major companies like Apple, Disney, Amazon, and Twitter. The acquisition was finalized for $30 million in a combination of cash and shares.
Tiny, a publicly traded company in Canada with a market capitalization of approximately $500 million, has made a name for itself by quietly acquiring companies that offer a range of front-end and back-end design and product services for tech companies and internet-based businesses. Its portfolio includes e-commerce technology player WeCommerce, online community Dribbble for designers, and task and project management tool Flow. Andrew Wilkinson, the co-founder of Tiny, is also associated with MetaLab, an interface design company that forms part of Tiny.
HappyFunCorp will operate independently from its base in Brooklyn, New York, where it was established, and will maintain its existing operations. The company will also collaborate closely with Tiny, leveraging its expertise in providing design and product services. Together, Tiny and HappyFunCorp work with well-known tech giants, both supporting in-house projects and assisting with the development of external products that fall outside an organization’s core workflow.
Clients of the combined Tiny organization range from smaller online businesses to major tech players such as Amazon, Facebook/Meta, Twitter, Disney, Samsung, and Apple. Anecdotes highlight the successful projects undertaken by MetaLab, including its development of the popular app Slack for a struggling startup. HappyFunCorp, founded in 2009, boasts an impressive list of big-name customers of its own. The company has been bootstrapped and profitable thus far, with 2022 revenues reaching $12 million. Its founders, Ben Schippers and Holly Zappa, along with COO Robb Chen-Ware, will continue to lead the company post-acquisition.
Tiny’s acquisition of HappyFunCorp is significant not only as another example of industry consolidation but also because it sheds light on companies that are likely to play a prominent role in the future of the tech ecosystem. With companies streamlining their workforces and budgets, the need for new product development remains vital. Tiny aims to capitalize on this demand and believes it will attract more business in the long run.
According to Schippers, companies are increasingly focusing on cost consolidation and turning to near shore models for their R&D needs. Rather than operating in expensive locations like New York or Vancouver, he predicts that companies will seek more cost-effective regions such as Costa Rica and other Latin American countries. This shift reflects the evolving landscape in which these companies operate.
Overall, the tech industry continues to evolve, with mergers and acquisitions shaping its trajectory. Tiny’s acquisition of HappyFunCorp is another step in this process, driven by both the need for consolidation and the desire for future growth. As companies navigate current challenges and explore new opportunities, firms like Tiny are positioned to be key players in the tech landscape.
