Business
Hostopia to acquire certain shared hosting customer assets of Tucows Retail Service Group
Drives incremental revenue growth for Hostopia as Tucows focuses its retail operations on email a...
About this update from Pure Energy Minerals Ltd.
[{"type":"text","content":"\n\n\n\nDrives incremental revenue growth for Hostopia as Tucows focuses its\n\n\nretail operations on email and online identity\n\n\nMISSISSAUGA, ON and FT. LAUDERDALE, FL, May 6 /CNW/ - Hostopia.com, Inc.\n(TSX: H) and Tucows Inc. (AMEX: TCX, TSX: TC) yesterday signed a definitive\nagreement for Hostopia to purchase certain of Tucows' shared hosting customer\nassets including approximately 14,000 Domain Direct, NetIdentity and\nItsYourDomain.com (IYD) customer accounts.\n\n\nHostopia will pay US$1.6 million in cash for these assets, with\nadjustments to be made on closing. This amount is payable 20% on signing of\nthe agreement and 80% upon the closing of the transaction, which is scheduled\nto occur on May 15, 2008. The companies plan to migrate these accounts to\nHostopia's unified web service platform by July 2008.\n\n\n"We are very pleased to have concluded this transaction. We are already\nhosting some of the Tucows Retail Service Group's users so the impact on\ncustomers should be minimal," said Colin Campbell, CEO, Hostopia. "Our plan is\nto provide customers with numerous upgrades and additional value-added\nservices to earn their loyalty and continued business. Traditional web hosting\nis fast evolving to the SaaS (software as a service) model and Hostopia is\nperfectly positioned to offer these services to these customers."\n\n\n"I am confident these shared hosting customers will enjoy quality service\nand support with Hostopia directly," said Elliot Noss, President and CEO,\nTucows. "This move is the first part of a strategy to reposition our retail\nbusiness to help individuals and small businesses build their identities\nonline."\n\n\nThe companies indicated that accounts involved in the transaction will\ncontinue to be served under the familiar Domain Direct brand, which will\noperate as a managed service by Hostopia.\n\n\nAbout Hostopia\n\n\nHostopia is a leading provider of web services that enable small- and\nmedium-sized businesses to establish and maintain an Internet presence. The\ncompany's customers are communication services providers, including\ntelecommunication carriers, cable companies, internet service providers,\ndomain registrars, and web hosting service providers. Hostopia's customers\npurchase their web services on a wholesale basis and resell these servic...