Canadian technology company Tucows, a provider of network access, domain names and other Internet services has made a hasty announcement saying that it has signed a definitive agreement to acquire wholesale domain name registrar eNom from Rightside Group, Ltd. Tucows will pay $83.5 million and will be funded through an amendment increasing Tucows’ existing credit facility to a total of $140 million.
This acquisition of eNom will add 14.5 million domains under management and 28,000 active resellers. That will give Tucows a total network of over 40,000 resellers globally and 29 million domains under management, making it the second largest domain registrar in the world.
David Woroch, Tucows’ Executive Vice President of Domains says:
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.
Elliot Noss, Tucows’ CEO threw in his two cents saying:
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.
Sounds great except… 40,000 resellers globally may have its first casualty
Many web hosting companies and registrars use Enom to resell domains which makes sense if domains are a small part of your bottom line and you don’t want to get ICANN accredited to sell generic domain extensions. (You do not need ICANN accreditation to sell country code top level domains.)
So while it may make sense to resell domain names when registration volume and domains under management are low, over the years some companies have grown aggressively by marketing heavily to web developers, webmasters, and anyone else that needs online web services including domain names, web hosting, SSL certificates, etc.
NameCheap is now stating that it has stopped reselling domain names through Enom and that new domains registrations and transfer will be directly through NameCheap. Namecheap also says that when a domain is renewed it will be automatically transfered from Enom to NameCheap.
Domain Name: ********.COM
Registrar: NAMECHEAP INC.
Sponsoring Registrar IANA ID: 1068
Whois Server: whois.namecheap.com
Referral URL: http://www.namecheap.com
Name Server: DNS1.REGISTRAR-SERVERS.COM
Name Server: DNS2.REGISTRAR-SERVERS.COM
Updated Date: 21-jan-2017
Creation Date: 21-jan-2017
Expiration Date: 21-jan-2018
While the exact number of domains managed by Namecheap through Enom is not known, their latest website states Namecheap “has about 3 million customers and more than 7 million domains under management”. I'll leave it for Tucows, Rightside Group, and Enom to do the math!
Tucows is a provider of network access, domain names and other Internet services. Ting delivers mobile phone service and fixed Internet access with outstanding customer support. OpenSRS manages nearly 15 million domain names and millions of value-added services through a global reseller network of over 13,000 web hosts and ISPs. Hover makes it easy for individuals and small businesses to manage their domain names and email addresses.
We work hard to provide unparalleled levels of service, security and support. We strive to offer intuitive products at the most competitive prices in the business. We never bombard our clients with unwanted upsells or in-your-face advertising. Our goal is to be honest, straightforward, friendly and helpful. And that's all.
Namecheap sits right at the doorstep of the web, so we know how important a domain name can be for your business. Our support staffers are some of the smartest, nicest people in the industry. In fact, every member of the Namecheap staff is skilled, well-trained and ready to help. We want you – our customers – to feel like rockstars and royalty, because that's what you are, as far as we're concerned. Making customers happy is our top priority.