Hostopia Gets 14,000 Hosting Accounts
Posted on 05.06.2008
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Hostopia.com, Inc. and Tucows Inc. just signed an 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. 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.
For those that follow these type of things, Hostopia will pay $1.6 million (US) 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."
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