An image from the presentation in April accompanying the news that CenturyLink would buy Savvis
(WEB HOST INDUSTRY REVIEW) — Telecommunications firm CenturyLink (www.centurylink.com) announced on Friday that it has completed its merger with web hosting provider Savvis (www.savvis.net).
This announcement comes several months after telecommunications provider Verizon closed the acquisition of cloud hosting provider Terremark.
First announced in April, the deal will integrate CenturyLink’s hosting business with Savvis’ managed hosting and cloud services. The objective, according to the press release, is to combine the services later this year to increase CenturyLink’s market share in the managed hosting and cloud space.
“The combination of CenturyLink’s hosting and network assets with Savvis’ proven solutions in colocation, managed hosting and cloud services substantially enhances CenturyLink’s capabilities and immediately provides the company with a solid platform for future growth,” Glen F. Post, III, chief executive officer and president of CenturyLink said in a statement. “The transaction helps us meet the accelerating demand for cloud-based services through a robust hosting presence, including 48 data centers in North America, Europe and Asia. CenturyLink is now positioned to address complex customer needs with our colocation, hosting and cloud products.”
According to the press release, Savvis will maintain its own brand for the forseeable future. The integrated hosting business will operate out of St. Louis and be led by members of the Savvis leadership team, including chief executive officer Jim Ousley.
Savvis says its stockholders will receive $30 per share in cash and 0.2479 of a share of CenturyLink common stock, valued at $10, for each Savvis share held at closing.
As part of the deal, CenturyLink prepaid approximately $546 million of Savvis’ credit facility debt.
Recently, Savvis Federal Systems won a $9.8 million government contract from the US Federal Election Commission to provide colocation, managed hosting and network services.
Last month, Savvis launched the first phase of its Savvis Markets Infrastructure.
About Nicole Henderson
Nicole Henderson writes full-time for the Web Host Industry Review where she covers daily news and features online, as well as in print. She has a bachelor of journalism from Ryerson University in Toronto, and has been writing for the WHIR since September 2010. You can find her on Twitter @NicoleHenderson.
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