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2 Months : From Oct 2019 to Dec 2019
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.
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 | firstname.lastname@example.org