CenturyLink, which completed its acquisition of Qwest earlier this month, has now made a bid for Savvis, a managed hosting and colocation provider. The boards of directors of CenturyLink and Savvis have approved a definitive agreement under which CenturyLink will acquire all outstanding shares of Savvis common stock in a cash and stock merger valued at $40 per share, or a total of approximately $2.5 billion, plus net debt of approximately $0.7 billion.
With the addition of Savvis, CenturyLink hopes to achieve global scale as a managed hosting and colocation provider and will accelerate its ability to deliver quality managed hosting and cloud capabilities to its business customers.
Together, CenturyLink and Savvis will operate 48 data centers located in North America, Europe, and Asia with more than 1.9 million square feet of gross floor space; a national 207,000-route-mile fiber network; a 190,000-mile global access network; and have a customer list that includes a majority of the Fortune 500 and Fortune 1000 companies.
CenturyLink anticipates integrating its hosting business and Savvis’ managed hosting and cloud services into a single CenturyLink business unit. This integrated hosting business will be based in St. Louis and led primarily by key members of the Savvis leadership team, including Savvis CEO James Ousley, who will head the unit. Following the closing of the transaction, CenturyLink will employ approximately 50,000 people.