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The following content is from an older version of this website, and may not display correctly.US data center services provider Savvis said Tuesday it had entered into an agreement to buy Canadian data center provider Fusepoint for about $124.5m in cash. The acquisition enables Savvis to enter the Canadian market, where Fusepoint operates three data centers in major metropolitan areas.
Savvis's Chairman and CEO Jim Ousley said the acquisition was spurred by requests from the company's existing customers. The company currently has facilities in the US, Europe and Asia, with the largest concentration on both east and west coasts of the US. Purchasing Fusepoint will give the buyer immediate and established presence in Toronto, Vancouver and Montreal.
"Our largest customers have been asking us to expand into Canada, and the acquisition of Fusepoint allows us to do so in a seamless and efficient manner," Ousley said in a statement. "Fusepoint has a great track record and extends Savvis' reach into the highly promising Canadian hosting market including Toronto, the financial center of Canada."
Fusepoint's three data centers have more than 40,000 sq ft of computer floor combined. The largest one is in Toronto, housing 28,000 sq ft of data center floor. According to Savvis, the company has made a significant investment in its facilities over the past several years.
Savvis expects to close the acquisition early this summer. It will finance the deal from cash already on-hand and from an upsize of an existing revolving credit facility led by Wells Fargo Capital Finance. Fusepoint's 2009 revenue was $41.7m. The company currently has more than 300 customers.
Savvis reported $874.4m in revenue for 2009, a two percent increase from 2008. Last year, the company shrunk its net loss to $20.8m from $22m it reported in 2008.
Savvis's Chairman and CEO Jim Ousley said the acquisition was spurred by requests from the company's existing customers. The company currently has facilities in the US, Europe and Asia, with the largest concentration on both east and west coasts of the US. Purchasing Fusepoint will give the buyer immediate and established presence in Toronto, Vancouver and Montreal.
"Our largest customers have been asking us to expand into Canada, and the acquisition of Fusepoint allows us to do so in a seamless and efficient manner," Ousley said in a statement. "Fusepoint has a great track record and extends Savvis' reach into the highly promising Canadian hosting market including Toronto, the financial center of Canada."
Fusepoint's three data centers have more than 40,000 sq ft of computer floor combined. The largest one is in Toronto, housing 28,000 sq ft of data center floor. According to Savvis, the company has made a significant investment in its facilities over the past several years.
Savvis expects to close the acquisition early this summer. It will finance the deal from cash already on-hand and from an upsize of an existing revolving credit facility led by Wells Fargo Capital Finance. Fusepoint's 2009 revenue was $41.7m. The company currently has more than 300 customers.
Savvis reported $874.4m in revenue for 2009, a two percent increase from 2008. Last year, the company shrunk its net loss to $20.8m from $22m it reported in 2008.