Domain name and internet services provider Tucows announced on Friday that it has acquired wholesale domain registrar eNom from Rightside Group for $83.5 million.
The acquisition of eNom will add 14.5 million domains under management and 28,000 active resellers. It will give Tucows a total network of over 40,000 resellers globally and 29 million domains under management.
The deal, as Andrew Allemann at Domain Name Wire points out, “leaves Rightside as a shell of its former self. eNom generated $116.5 in revenue during the first three quarters of the year, representing 72% of Rightside’s revenue during that period. Rightside will be left with its portfolio of new top level domain names, portfolio of second level domains and Name.com.”
“For years, eNom and OpenSRS have been the two leading registrars primarily focused on the needs of resellers. This focus means these businesses fit very well together,” David Woroch, Tucows’ Executive Vice President of Domains said. “The acquisition keeps eNom resellers where they will be well understood, well valued and well served and creates tremendous value for Tucows and resellers on both sides through efficiency and scale.”
“This industry has changed so much since Tucows and eNom each launched wholesale registrar services over fifteen years ago and .com, .net and .org essentially represented the namespace,” Elliot Noss, Tucows’ CEO said. “It is a lot more challenging and complex now. At the same time, it is more mature and much more competitive. Scale is absolutely critical. This is a rare deal that gives Tucows and its investors exactly that while offering an immediate cash on cash return.”
Tucows expects the transaction to be immediately accretive to earnings. Tucows trades on the NASDAQ as TCX.
UPDATE: This article erroneously stated that Rightside’s share of NameJet was not part of the transaction with Tucows. The share of NameJet was sold to Tucows as part of the deal.