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Here's the The Lowdown
from DN Journal,
updated daily
to
fill you in on the latest buzz going around the domain name industry.
The Lowdown is
compiled by DN Journal Editor & Publisher Ron
Jackson. |
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Tucows
Signs Definitive Agreement to Acquire Enom from
Rightside for $83.5 Million
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Tucows
Inc. (NASDAQ:TCX,
TSX:TC), a popular provider of
network access, domain names and
other Internet services, announced
this morning that it has
signed a definitive agreement
to acquire wholesale domain
name registrar eNom
from Rightside
Group, Ltd. (NASDAQ:
NAME). The transaction is expected
to close later today.
Tucows
will pay $83.5 million and
the transaction is expected to be
immediately
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accretive
to earnings. The acquisition will be
funded through an amendment
increasing Tucows’ existing credit
facility to a total of $140
million.
The
acquisition of eNom will add 14.5
million domains under management
and 28,000 active resellers
to the Tucows portfolio. That will
give Tucows a total network of over
40,000 resellers globally and 29
million domains under
management, making it the second
largest domain registrar in the
world.
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Tucows
CEO Elliot Noss |
Elliot
Noss, Tucows’ CEO
said, “This industry has
changed so much since Tucows
and eNom each launched
wholesale registrar services
over fifteen years ago and
.com, .net and .org
essentially represented the
namespace. It is a lot more
challenging and complex now.
At the same time, it is more
mature and much more
competitive. Scale is
absolutely critical.
This is a rare deal that
gives Tucows and its
investors exactly that while
offering an immediate cash
on cash return.”
David
Woroch, Tucows’
Executive Vice President of
Domains, added, “For
years, eNom and OpenSRS
(operated by Tucows) have
been the two leading
registrars primarily focused
on the needs of resellers.
This focus means these
businesses fit very well
together. The acquisition
keeps eNom resellers where
they will be well
understood, well valued and
well served and creates
tremendous value for
Tucows and resellers on both
sides through efficiency and
scale.” |
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In
addition to
operating domain
registrars eNom and Name.com,
Rightside is one of
the top operators of
new gTLD
registries. CEO Taryn
Naidu said, “ The
divestiture of eNom
creates a stronger
alignment between
Rightside’s
vision, strategy and
financial profile
and we believe this
is the best way to
increase shareholder
value. The market
for new gTLDs
is rapidly
developing and the
divestiture enables
us to more intensely
focus on our higher
growth and higher
margin businesses,
where our Registry
and Name.com
businesses are
leading the way with
the new domains.”
Naidu
added, “We would
like to thank our
eNom colleagues for
their hard work in
building such a
well-respected
business and for
their dedication to
Rightside. We
look forward to
seeing their
continued success
and continuing to
work with eNom as a
valuable
distribution partner
as part of Tucows." |
Rightside
CEO Taryn Naidu |
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(Posted
January 20, 2017)
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