December 14, 2005 — (WEB HOST INDUSTRY REVIEW) — Internet services wholesaler Tucows (tucows.com) announced on Wednesday that it had signed an agreement to acquire the hosted messaging assets of service provider Critical Path (criticalpath.net) for $8 million in cash and assumed liabilities.
“With this acquisition, Tucows becomes a leader in hosted email, especially hosted email for Internet service providers and Web hosting companies,” says Elliot Noss, president and CEO for Tucows. “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.”
Toronto-based Tucows says it will maintain Critical Path’s hosted messaging data centers in Denver, Colorado and London, England. David Woroch, vice president of sales and marketing, says the company plans to grow the hosted email business with Critical Path’s Memova messaging software.
“We are excited about the relationship with Tucows,” said Mark Ferrer, CEO and chairman of Critical Path. “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 has been approved by the board of directors on both sides and is expected to close January 3, 2006.
