Dovecot FAQ

What is being announced?

Today we are announcing that Open-Xchange AG is merging with Dovecot OY to create a world-class provider of open source cloud software for ISPs, telcos and cable companies requiring one point of contact for an integrated solution stack – from email backend to application frontend. Open-Xchange is the only company providing a full suite of applications – comparable to what the large over the top services are providing – in the form of Open Source software. Dovecot OY will ultimately become a subsidiary of Open-Xchange.

What are the financial terms of the merger?

The three Dovecot owners and founders of the company – Timo Sirainen, Mikko Linnamäki and Markku Kenttä – are now shareholders of Open-Xchange AG. The deal has been structured in this way to maintain the commitment and leverage the success of a joint enterprise and go-to-market solution. The merger creates a strong and stable entity with critical mass to quickly accelerate the market opportunities currently available and take full advantage of the combined positioning.

Why did Open-Xchange and Dovecot merge?

Both Open-Xchange and Dovecot work with hosters, telcos, large service providers and cable companies. We have worked together successfully on various large customer projects with millions of users. This merger means our customers and prospects can benefit from complete single stack solution including email backend and application frontend from a single provider. Together, our integrated offerings are based on our strengths as a robust email service with a state-of-art web UI.

Will there/have there been any job losses or redundancies as a result of the merger?

No, there will be no job losses or redundancies as the two companies complement each other – this action positions us for a period of strong growth.

Give me an idea of the size of the merged companies

The combined company with 150 employees is privately owned. It is headquartered in Nuremberg and other offices in Olpe and Hamburg, Germany, as well as Helsinki, Finland, and Palo Alto, CA. As of the end of 2014, 57% of all reachable IMAP servers on the Internet were based on Dovecot. There are 2.9 million Dovecot Servers live, and growing. Dovecot is part of all major Linux distros. There are very large installations with more than 30 million users each are run on Dovecot, for both email and voicemail. 130 million OX App Suite seats were sold to more than 80 service providers and thousands of Government bodies and businesses worldwide. Installation sizes vary from few users to tens of millions.

How much additional business does Open-Xchange expect to realize from this merger?

We expect that the Open-Xchange-Dovecot merger will drive revenue in two main areas: 1) cross-selling opportunities into each company’s current customer base, and 2) addressing a broader set of needs for new and existing customers. Both Open-Xchange and Dovecot have grown 50% in revenue over the last few years. The combined company is expected to sustain this healthy growth.

Will Open-Xchange be doing other mergers or making other acquisitions in the future?

Open-Xchange is the trusted cloud solution provider for an open Cloud ecosystem – and this merger adds to our healthy growth and progression. As the service provider market consolidates, technological requirements change. Open-Xchange’s software provides a complete communication software stack, which can be adapted to maximise the benefits of other innovative cloud technology to an agile, connected world. Mergers and acquisitions are considered key tools for strategic business growth. Our strength lies in the knowledge of our people, the power of their collaboration, and the success of our communication; we look at all potential acquisitions with this in mind.

Will Dovecot retain its company name and its name in the products after the merger?

Yes. The Dovecot name is well-known in the industry, there is no reason to change that. To show that Dovecot OY is now a member of the OX family, we have added an identifier to the logo: “Dovecot OY, an OX Company”.

Will this merger impact pricing for either the Open-Xchange or Dovecot products?

Pricing of the products is determined by the market and the value they deliver. As we improve all product lines, price changes may happen. This merger will not trigger price changes.

How will this merger impact current Open-Xchange and Dovecot customers?

Both Open-Xchange and Dovecot customers will benefit greatly from this merger, since they will be able to purchase a robust email service with a state-of-art web UI; it’s the complete open source solution stack – from email backend to application frontend – from one company, via one product family. This reduces interfaces, simplifies contractual terms, and provides them with immediate technical support, when needed.

Both Open-Xchange and Dovecot customers should be assured that there will be no interruption of services or degradation in the quality and effectiveness of the customer support and other services they have come to expect from Open-Xchange and Dovecot.

Will Dovecot remain Open Source?

Of course! The Dovecot product lives and breathes the open source philosophy. There will always be a Dovecot open source version. Timo Sirainen and his growing team of developers, together with the community, will continue to innovate on the core open source Dovecot product and at the same time, will continue to develop the commercial Dovecot Pro features for our customers. Dovecot’s current, very successful, business model will remain the same.

What will change for Dovecot and Open-Xchange?

We will continue to grow the talent in the Dovecot development center in Helsinki, Finland – and keep the Dovecot brand. For Open-Xchange, no change is expected other than working even closer with our new Finnish colleagues. We have already integrated processes in technical presales, sales, professional services and support. This ensures that customers receive world-class technical services for their complete email stack – from a single open source software vendor.

Will the Dovecot management team stay with the company?

Yes, absolutely – the complete Dovecot team are committed to driving the success of the joint enterprise. The management team – Markku Kenttä, CEO and Co-Founder, Mikko Linnamäki, Co-Founder and Timo Sirainen, Chief Architect and Founder – have become Open-Xchange shareholders.

As new shareholders in the business, what percentage will the Dovecot management team own?

As Open-Xchange is a privately-owned company we are not releasing this information.

Is an IPO part of Open-Xchange’s future plans?

We certainly believe that the new Open-Xchange represents an excellent investment opportunity. To that end, we would consider the possibility of going public in the future but not right now as our focus is on seizing the market opportunities before us and developing a healthy and strong foothold in how open source IT services capture the norm of scaling business and value in the Internet age.