Ting Fiber to expand Colorado presence with acquisition of Cedar Holdings Group
TORONTO, November 1, 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 (https://tucows.com).
Tucows, Ting, OpenSRS, Ascio, Enom and Hover are registered trademarks of Tucows Inc. or its subsidiaries.
Tucows Announces Timing for Q3 2019 Financial Results News Release and Management Commentary: Wednesday, November 6, 2019 at 5:05 P.M. ET
TORONTO, October 23, 2019 – Tucows Inc. (NASDAQ: TCX, TSX: TC) today announced that it will report its third quarter 2019 financial results via news release on Wednesday, November 6, 2019 at 5:05 p.m. ET.
Concurrent with the dissemination of its quarterly financial results news release at 5:05 p.m. ET on Wednesday, November 6, management’s pre-recorded audio commentary (and transcript) discussing the quarter and outlook for the Company will be posted to the Tucows website at https://www.tucows.com/investors/financials. In lieu of a live question and answer period, for the subsequent six days, until Tuesday, November 12, shareholders, analysts and prospective investors can submit questions to Tucows’ management at email@example.com. Management will post responses to questions of general interest (audio recording and transcript) to the Company’s website at https://www.tucows.com/investors/financials/ on Thursday, November 21 at approximately 4:00 p.m. ET. (the Company has extended the period to post its responses this quarter due to its annual Board of Directors offsite meeting). All questions will receive a response, however, questions of a more specific nature may be responded to directly.
Tucows statement regarding the industry Framework to Address Abuse of the DNS
There are a bunch of reasons that we, as a private company working at such a fundamental level of the Internet as the domain name system (DNS), don’t act on content concerns unless compelled by much more than public backlash. None of those reasons are related to money, because we want to protect bad actors online, or because we agree with anything they have to say.
The industry document Framework to Address Abuse was created by a handful of leading DNS operators including Tucows, Amazon, GoDaddy, Donuts, and Afilias. It is the best source to understand how, when, and why these private companies may exercise their authority to deny access to the public DNS.
Our compliance team carefully evaluates all DNS abuse reports that are submitted. In cases where there is evidence of abuse that falls into the Framework, we can and do act to deny access to the DNS via the Tucows platform.