Savvis Completes Acquisition of Fusepoint
By Savvis Inc., PRNETuesday, June 15, 2010
Expands Global Footprint into Canada
ST. LOUIS, June 16, 2010 - Savvis, Inc. (Nasdaq: SVVS), a global leader in cloud infrastructure and
hosted IT solutions for enterprises, today announced that it has completed
its acquisition of Fusepoint, Inc., a leading independent provider of managed
IT and colocation services to enterprises in Canada.
Fusepoint, a portfolio company of M/C Venture Partners, was acquired for
approximately US$121 million in cash (after adjustment for estimated working
capital and debt levels and subject to a final working capital adjustment).
Savvis expects the acquisition purchase price to approximate 5.0x EBITDA
after synergies of approximately US$8 million, which are expected to be fully
achieved in 2011.
"Savvis and Fusepoint share a leadership position within our industry.
Our synergies will lead to many exciting opportunities for new and existing
clients," said Jim Ousley, Savvis chairman and chief executive officer. "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."
Established in 1999 and headquartered in Toronto, Fusepoint's offerings
include managed infrastructure and hosting, colocation services, application
development and maintenance services. Fusepoint's three data centers, located
in Toronto, Vancouver and Montreal, offer a total of more than 40,000
sellable square feet. The company has more than 300 clients.
"This deal is consistent with our strategy to further strengthen our
hosting business, to expand geographically and to focus on major financial
centers like Toronto," Ousley said. "We have been impressed with Fusepoint's
performance over the past several years, and our combined operations are
well-positioned within the highly promising Canadian hosting market."
Savvis funded the acquisition by upsizing, through syndication, its
revolving credit facility with Wells Fargo Capital Finance LLC to US$150
million. The revolving credit facility was amended, among other things, to
modify certain financial covenants to accommodate the increased borrowings.
About Savvis
Savvis, Inc. (NASDAQ: SVVS) is a global leader in cloud infrastructure
and hosted IT solutions for enterprises. More than 2,500 unique clients,
including 30 of the top 100 companies in the Fortune 500, use Savvis to
reduce capital expense, improve service levels and harness the latest
advances in cloud computing. For more information, please visit
savvis.net.
Savvis Forward-Looking Statements
This document may contain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 about the acquisition
of Fusepoint by Savvis. These statements include statements regarding the
amount and timing of anticipated synergies resulting from the transaction,
customer benefits resulting from the transaction and the effect of the
transaction on Savvis' business. There is no assurance that the anticipated
benefits of the acquisition will be realized. Forward-looking statements can
be identified by the fact that they do not relate strictly to historical or
current facts. They often include words like "believe," "expect,"
"anticipate," "estimate," and "intend" or future or conditional verbs such as
"will," "would," "should," "could" or "may." Certain factors that could cause
actual results to differ materially from expected results include increased
competitive pressures, changes in general economic conditions, extent of
customer retention and generation, ability to timely and fully realize
contemplated cost savings and revenue enhancements and other difficulties in
integrating the operations of Savvis and Fusepoint. Savvis does not
undertake, and specifically disclaims, any obligation to publicly release the
result of any revision to any forward-looking statements to reflect the
occurrence of anticipated or unanticipated events or circumstances after the
date of such statements. Certain factors that could affect actual results are
set forth as risk factors in Savvis' SEC reports and filings, including its
annual report on Form 10-K and all subsequent filings.
Investors, Peggy Reilly Tharp, +1-314-628-7491, peggy.tharp at savvis.net, or Media, George Csolak, +1-314-628-7266, george.csolak at savvis.net, both of Savvis, Inc.
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