Today, Escrow.com put out a press release announcing their acquisition of a small competitor called Agreed.com. This deal merges the biggest online escrow company in the world with one of the youngest domain escrow companies to hit the market. Escrow.com was founded in 1999 and has processed more than $2 billion worth of transactions, while Agreed launched in January of this year.
Statement from Brandon Abbey, President and Managing Director of Escrow.com: “By integrating the technologies of our companies, we will be able to offer a more comprehensive set of options to the domain community…” “When Ammar first approached me with this opportunity, I felt that it would be a good thing for the domain industry, and, since then, we’ve both put a lot of time and effort into making it happen.”
Statement from Ammar Kubba, CEO of Agreed.com: “We’ve spent the past several years building a powerful and intuitive online escrow platform for the domain community. Escrow.com will now be able to scale more rapidly and successfully deliver additional services to the global market. I look forward to working with Brandon and his team throughout the transition and for years to come.”
Based on Abbey’s statement, it appears that Mr. Kubba approached him first with the proposal.
I believe this is a solid merger for both companies, but in my opinion Agreed is getting more out of this deal. Escrow.com is a trusted leader and their market share was never threatened by Agreed. It was mostlikely just a business development decision by Escrow.com.
Escrow.com gains Agreed’s technology, customer base, and the only other licensed escrow company online.
Agreed.com gains cash and minimizes their risk by selling now. Who knows where they would have ended up had they decided to stay in the game and take on Escrow.com as a competitor. Seems like a smart move to me.
There has been no word on how much Agreed.com was purchased for.
Press release source: PRWeb