Company acquired international accounts for $6.0 million on April 1.
Tucows (NASDAQ: TCX) expects its acquisition of reseller accounts from Melbourne IT to generate $2 million in gross margin per year, the company revealed yesterday.
The company paid $6.0 million to acquire Melbourne IT’s reseller accounts, with the exception of those based in Australia and New Zealand. The acquisition closed on April 1.
The deal added 1.6 million domain names under management that generate $13 million in annual revenue.
Tucows didn’t acquire any operations, so its savings on the expense side from the deal amount to not much more “than a few hundred thousand dollars,” Tucows CEO Elliot Noss said on yesterday’s investor conference call.