Joyent, a groupware product that launched six weeks ago, has just acquired TextDrive, a 18 month-old web hosting company. Joyent was struggling with its infrastructure and TextDrive wanted to become more involved in the hosted applications space so the acquisition makes sense in that context.
The announcement definitely seems like a case of startup synergy from two cash-flow positive businesses.
I host my sites at TextDrive and received a 1 GB bump in my storage allocation this morning. TextDrive offers cutting edge developer features including the latest versions of Apache, Lighttpd, MySQL, PHP, Perl, Python, Ruby, and Ruby on Rails. TextDrive also donates 50% of its profits to an open source web project chosen by the account holder.
I will have to wait and see how the acquisition changes the combined company.