June 16, 2006 -- (WEB HOST INDUSTRY REVIEW) -- Internet service wholesaler Tucows (tucows.com) announced on Friday it has entered into an agreement to acquire Mailbank (mailbank.com), a privately held company that operates a large porfolio of surname domains under the name NetIdentity.
Tucows will pay approximately $18 million in cash, promissory notes and the issue of approximately 3,603,000 shares of common stock to the stockholders of NetIdentity. Tucows expects this acquisition to add between $3 and $4 million in cash flow in 2007. It now expects cash flow from operations to be in the range of $7 million to $8 million for 2006 and $10 million to $12 million for 2007.
The acquisition will enable Tucows to offer personalized Internet services through its channel of over 6,000 resellers. The portfolio includes thousands of the most common surnames and will be used to enhance Tucows' email, Web publishing and domain services.
"There is a very natural fit between NetIdentity and Tucows' retail business," says Elliot Noss, president and CEO for Tucows. "However, this gives our wholesale offerings, especially our hosted email service, something unique in the marketplace. It took over 10 years for NetIdentity to build this incredible portfolio of surnames. With this acquisition, we will provide our channel with the ability to personalize the services they offer in ways they will not find anywhere else."
