Toronto, Ontario, Canada – (The Hosting News) – December 15, 2005 – Domain name wholesaler, Tucows Inc. has signed a definitive agreement with Critical Path, Inc. to acquire substantially all of Critical Path’s hosted messaging assets for up to U.S. $8.0 million in cash plus the assumption of some related contractual liabilities.
Included in the purchase are Critical Path’s customer base, hosted messaging communications infrastructure, and other related assets, such as goodwill and a software license for Memova Messaging.
Tucows will maintain the hosted messaging data centers in Denver, Colorado and London, England. Tucows will also offer employment to the majority of Critical Path’s hosted messaging operations and support teams located in Toronto, Ontario.
Elliot Noss, President and CEO, Tucows Inc. explained the benefits of the purchase, ”With this acquisition, Tucows becomes a leader in hosted email, especially hosted email for Internet service providers and web hosting companies. It is consistent with our strategy to be a leading provider of Internet services to service providers. It will deepen our relationships with existing customers, add a number of new service provider customers and further diversify our revenue streams.”
David Woroch, Vice President of Sales and Marketing, Tucows Inc. added, ”We believe our plan will result in a seamless transition for our new customers. We intend to grow the hosted email business by providing a greater customer experience through our focus on the needs of our service provider customers and leveraging the features of the Memova Messaging software.”
Mark Ferrer, CEO and Chairman, Critical Path commented on the acquisition, ”We are excited about the relationship with Tucows. It gives Critical Path the ability to continue to offer multiple delivery options for our software, while allowing us to focus on our core strength – software development.”
The acquisition will be accounted for as a purchase transaction and has been approved by both companies’ boards of directors. The acquisition is anticipated to close January 3, 2006, and is subject to standard closing provisions and conditions. A podcast and a FAQ concerning this announcement are available at: http://resellers.tucows.com/about/investor/he1.