Tucows Inc. (NasdaqCM:TCX) entered into a definitive agreement to acquire International Domain Name Business from Melbourne IT Ltd. (ASX:MLB) for AUD 8.5 million on March 15, 2016. Tucows will pay 10% in escrow until 95% of customers are migrated. Tucows will not acquire any of Melbourne IT's operations. The acquired assets were funded through a AUD 8.5 million advance of the 2012 DLR loan on March 31, 2016. The deal, subject to customary closing conditions, is expected to complete by April 30, 2016 or earlier if conditions are satisfied. The deal is expected to be earnings accretive to Melbourne IT with a neutral impact on underlying EPS in colander year 2016 and 7% uplift in colander year 2017. The transaction is not considered to be material for Tucows. The sale represents an implied sale multiple of 4.5x to 4.7x financial year 2016 underlying EBITDA. Cheval Capital, Inc. acted as the financial advisor for Melbourne IT Ltd.

Tucows Inc. (NasdaqCM:TCX) completed the acquisition of International Domain Name Business from Melbourne IT Ltd. (ASX:MLB) on April 1, 2016.