December 16, 2005 – (HOSTSEARCH.COM) – Tucows announced yesterday that it has agreed to purchase Critical Path's hosted email messaging assets (including the company’s customer base) for up to $8.0 million in cash plus related contractual liabilities. The agreement also includes a software license for Memova(TM) Messaging.
"With this acquisition, Tucows becomes a leader in hosted email, especially hosted email for Internet service providers and web hosting companies," said Elliot Noss, President and CEO, Tucows Inc. "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."
"We believe our plan will result in a seamless transition for our new customers," said David Woroch, Vice President of Sales & Marketing, Tucows Inc. "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."
"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 purchase has been approved by the Boards of Directors of both companies and the deal will be finalized around January 3, 2006. Tucows’ Data Center operations in Denver, Colorado and London, England will not be impacted by the development and the company intends to offer employment to the majority of Critical Path staff located in Toronto, Ontario.
