(WEB HOST INDUSTRY REVIEW) — Web hosting provider Savvis (www.savvis.net) announced on Wednesday it has completed the acquisition of managed IT and colocation provider Fusepoint (www.fusepoint.com).
Fusepoint was acquired by parent company M/C Venture Partners for approximately $121 million in cash.
This is slightly less than the $124.5 million purchase price when the acquisition was first announced earlier this month.
Savvis expects the acquisition purchase price to be roughly five times the EBITDA after synergies of approximately $8 million, which are expected to be fully achieved in 2011.
“Savvis and Fusepoint share a leadership position within our industry,” says Jim Ousley, Savvis chairman and CEO. “Our synergies will lead to many exciting opportunities for new and existing clients. Not only will we have a Canadian platform – which our largest clients have requested – Fusepoint’s clients will gain access to Savvis’ global footprint and enterprise-class managed service offerings.”
Fusepoint provide a range of services including managed infrastructure and hosting, colocation services, application development and maintenance services to its more than 300 clients.
The company also has three data centers, located in Toronto, Vancouver and Montreal with a total of more than 40,000 sellable square feet.
Savvis funded the acquisition by upsizing, through syndication, its revolving credit facility with Wells Fargo Capital Finance to $150 million.
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