This news has to be one of the most interesting surprises of domain name industry in early 2017, Tucows Inc. acquiring wholesale domain name registrar eNom Inc. from Rightside Group, Ltd for $83.5 million.
A press release was issued by Tucows Inc. earlier today with a claim that combined entity will be the second largest domain name registrar in the world after Godaddy.
Tucows Inc. will acquire over 28,000 domain name resellers and 14.5 million domain names which are under eNom Inc. management at the moment. The acquisition will help company grow its reseller network to over 40,000 with over 29 million domain names under management.
Elliot Noss – Chief Executive Officer of Tucows Inc. stated, “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. 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.”
Followed by a statement from David Woroch – Executive Vice President of Domains, Tucows Inc. stating “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. 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.”
In our observation, the domain name registration space has intensified with recent developments of acquisitions happening one after the other. Godaddy has been aggressively acquiring large domain name portfolios from individual resellers while Tucows Inc. played a master-stroke here.