Hosting News
Hostopia to Acquire Tucows Hosting
May 08, 2008 |
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Hostopia and Tucows Inc yesterday signed a definitive agreement for Hostopia to
purchase certain of Tucows' shared hosting customer assets including
approximately 14,000 Domain Direct, NetIdentity and ItsYourDomain.com (IYD)
customer accounts.
Hostopia will pay US$1.6 million in cash for these assets, with adjustments to
be made on closing. This amount is payable 20% on signing of the agreement and
80% upon the closing of the transaction, which is scheduled to occur on May 15,
2008. The companies plan to migrate these accounts to Hostopia's unified web
service platform by July 2008.
"We are very pleased to have concluded this transaction. We are already hosting
some of the Tucows Retail Service Group's users so the impact on customers
should be minimal," said Colin Campbell, CEO, Hostopia. "Our plan is to provide
customers with numerous upgrades and additional value-added services to earn
their loyalty and continued business. Traditional web hosting is fast evolving
to the SaaS (software as a service) model and Hostopia is perfectly positioned
to offer these services to these customers."
"I am confident these shared hosting customers will enjoy quality service and
support with Hostopia directly," said Elliot Noss, President and CEO, Tucows.
"This move is the first part of a strategy to reposition our retail business to
help individuals and small businesses build their identities online."
The companies indicated that accounts involved in the transaction will continue
to be served under the familiar Domain Direct brand, which will operate as a
managed service by Hostopia.
About Hostopia
Hostopia is a leading provider of web services that enable small- and
medium-sized businesses to establish and maintain an Internet presence. The
company's customers are communication services providers, including
telecommunication carriers, cable companies, internet service providers, domain
registrars, and web hosting service providers. Hostopia's customers purchase
their web services on a wholesale basis and resell these services under their
own brands to small- and medium-sized businesses. The company provides customers
with the technology, infrastructure, and support services to enable them to
offer web services, while saving them research and development as well as
capital and operating costs typically associated with the design, development,
and delivery of web services. Nexthaus is a global leader in data and device
synchronization and has developed industry-recognized SyncML solutions that
feature wireless interoperability between PC's, handheld devices and mobile
phones. For more information, visit
www.nexthaus.com.
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