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May 6, 2008 -- (WEB HOST INDUSTRY REVIEW) -- Web hosting provider Hostopia (hostopia.com), and Internet services company Tucows (tucows.com) announced on Tuesday it signed a definitive agreement yesterday for Hostopia to acquire Tucows' shared hosting customer assets, including approximately 14,000 Domain Direct (domaindirect.com), NetIdentity (netidentity.com) and ItsYourDomain (itsyourdomain.com) customer accounts.
Tucows offers Internet services to a global network of over 7,000 web hosts, ISPs and other providers of Internet services, as well as provisions millions of email boxes and manages over seven million domains.
Hostopia will pay $1.6 million in cash for these assets, with adjustments to be made on closing. The web host will pay 20 percent on signing the agreement and 80 percent upon the closing of the transaction, which is scheduled to take place on May 15.
Hostopia and Tucos will work together to move these accounts to Hostopia's unified web service platform by July. The 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.
"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," says Colin Campbell, CEO of 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 software as a service model and Hostopia is perfectly positioned to offer these services to these customers."
This marks the second acquisition Hostopia has announced in the past couple weeks. Last week, the web host signed a definitive agreement to purchase the customer assets of web hosting provider Luxomovera, which operates as uplinkearth, in an all-cash offer for an unspecified amount. The transaction will add another 12,500 small business customers from uplinkearth's data center facility to Hostopia's unified web services platform by June 30.
Hostopia provides web services that enable small- and medium-sized businesses to establish and maintain an online presence. The company's customers are communication services providers, including telecommunication carriers, cable companies, internet service providers, domain registrars and web hosting providers.
Read Back Issues of WHIR Magazine
October 2009 - Web Hosting's All Star Team
This has been, for us, one of the most interesting, exciting and challenging build-ups to an issue of the magazine yet, Web Hosting's All Star Team. The balloting process was our first experiment with a kind of user participation we're planning to do a lot more with in the months to come. We had thousands of ballots submitted, with hundreds of write-in suggestions and a demonstration of user engagement that has us feeling super positive about the project.
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July 2009 - What am I Worth?
One of the interesting luxuries of working on a project like the printed WHIR magazine is that it allows us to play with things like our point of view from one issue to the next. In recent months we've been giving added attention to the kind of practical and applicable advice aimed at smaller hosts and resellers. This issue carries on with that point of view, asking, in our cover story, "what am I worth?" It's a complicated question without a clear-cut answer.
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May 2009 - The Blueprint for a Small Web Host
I was a little surprised by how difficult it became to see this idea through. We set out to assemble a blueprint for a small hosting business, but butted up pretty quickly against the general impossibility of covering all the territory that was out there to be covered. The basic constraints of a printed magazine, and the less-than-infinite amount of time we had available forced us to face the fact that we could never produce an exhaustive guide to starting a hosting company.
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