Herndon, Virginia based Savvis beat six other companies, including XO Communications Inc, to buy the assets of Cable & Wireless USA Inc (CWA). Savvis will assume liabilities of approximately $12.5m as part of the deal, which had to be approved by the US bankruptcy court on Friday.
The acquisition will double the size of Savvis, adding 1,100 employees to Savvis’s 1,000 and push the combined company’s revenue of about $700m annually. Savvis chairman and chief executive Robert A. McCormick said the businesses are really complementary due to the fact Savvis sells private networks and Internet services internationally, while Cable & Wireless USA sells Internet services domestically.
Under the proposed terms of sale, SAVVIS will purchase all of CWA’s business assets, including a Tier 1 IP Network, serving more than 2,000 enterprise customers and a footprint encompassing 27% of all Internet routes, CWA’s hosting services, with more than 1,000 enterprise customers, 15 data centers, and the company’s managed hosting, consulting and infrastructure services.
Additionally, Savvis struck a deal with DuPont Fabros Interests LLC to sell its rights to acquire five of the CWA data centers to DuPont for $52m, and to leaseback the data centers for 15 years.
The CWA acquisition is Savvis’s third purchase in two years. In 2002, Savvis purchased four data centers from Intel Corp, while in July of that year Savvis purchased the assets of networking company Wam!Net Inc, a content management and enterprise networking company.
This article is based on material originally published by ComputerWire
