Tucows’ Ting Fiber to Expand Colorado Presence With Acquisition of Cedar Holdings Group
November 01 2019 - 7:15AM
Tucows Inc. (NASDAQ:TCX, TSX:TC), a provider of network access,
domain names and other Internet services, announced that it has
signed a definitive agreement to acquire Cedar Holdings Group
through Tucows subsidiary, Ting Fiber, Inc.
Cedar Holdings Group is a telecommunications provider serving
multiple markets in the Western Slope of Colorado and northwestern
New Mexico. Cedar has focused the last several years on building
fiber to enterprise, anchor institution, and residential
customers.
Tucows will pay $9 million in cash and $2 million in restricted
stock upon closing. There are additional contingent payments of up
to $4 million in total that are subject to meeting specific
benchmarks, and that would be paid at 24 and 36 months from
closing. The cash component of the purchase price will be funded
through Tucows’ existing credit facility.
The acquisition of Cedar adds approximately 1,400 customers and
6,400 addresses passed by fiber to the Ting Internet footprint.
Cedar’s high-quality customer base, multi-market fiber footprint
and potential for expedited FTTH expansion to existing markets make
it an attractive investment and complementary operation for
Ting.
Jeff Fink, co-founder of Cedar commented, “We’ve spent almost 20
years helping our loyal local customers connect with the world in
innovative ways. We are excited that we’ve found a partner in Ting
that shares our passion for delivering an outstanding customer
experience, and has the resources to expand 21st century fiber
infrastructure to the communities in which we live and serve.”
“This acquisition makes perfect sense for our business and our
shareholders,” added Elliot Noss, Tucows’ CEO. “Cedar’s customers
get a customer-focused provider that will invest in expanding its
footprint. Ting gets an excellent business with a deeply
experienced team, high-quality enterprise customer base, and the
potential for rapid expansion from the existing footprint. Our
shareholders get the benefit of the instant addition of serviceable
addresses; more scale on the overall Ting business; and the
opportunity to leverage some of our existing resources in the
region.”
The Revenue and Adjusted EBITDA contribution from this
transaction will be immaterial to Tucows’ 2019 results. The Company
expects to provide additional information on the ongoing
contribution and expected synergies as part of its 2020 guidance
update in February, 2020.
The acquisition is subject to regulatory approvals and other
customary closing conditions and is expected to close by the end of
2019.
About Cedar Holdings Group
Cedar Holdings Group is a telecommunications provider serving
multiple markets in the Western Slope of Colorado and northwestern
New Mexico. Since its inception in 2000, Cedar has focused on
delivering next-generation technology solutions in its markets,
which includes building fiber to enterprise, anchor institution,
and residential customers.
About Ting Internet
Ting Internet provides crazy fast fiber Internet in select US
towns and cities. Ting is committed to net neutrality and the open
Internet. More than that, Ting is committed to being a part of
improving the communities it serves by supporting and championing
local good works. Ting sponsors local programs, events,
foundations, festivals, charities, and public services everywhere
we go, investing in the future of the towns we serve.
About Tucows
Tucows is a provider of network access, domain names and other
Internet services. Ting (https://ting.com) delivers mobile phone
service and fixed Internet access with outstanding customer
support. OpenSRS (http://opensrs.com), Enom (http://www.enom.com)
and Ascio (http://ascio.com) manage a combined 25 million domain
names and millions of value-added services through a global
reseller network of over 37,000 web hosts and ISPs. Hover
(http://hover.com) makes it easy for individuals and small
businesses to manage their domain names and email addresses. More
information can be found on Tucows’ corporate website
(http://tucows.com).
Tucows, Ting, OpenSRS, Ascio, Enom and Hover are registered
trademarks of Tucows Inc. or its subsidiaries.
Contact:Lawrence Chamberlain(416) 519-4196 |
lawrence.chamberlain@loderockadvisors.com
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