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Market: NASDAQ
Sector: IT Hardware
EPIC: SVVS
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Savvis
www.savvis.net

SAVVIS provides information technology services including cloud services, managed hosting, managed security, colocation, professional services, and network services, through its global infrastructure to businesses and government agencies.

Full Savvis profile here
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NASDAQ listed IT group Savvis snaps up Toronto based Fusepoint for $124 million

1st Jun 2010, 3:43 pm
NASDAQ listed IT group Savvis snaps up Toronto based Fusepoint for $124 million

Cloud infrastructure and IT enterprise solutions group Savvis (NASDAQ: SVVS) is acquiring Toronto headquartered Fusepoint, Inc for $124.5 million in cash.

Fusepoint is a portfolio company of M/C Venture Parterns, a venture capital firm focused on the communications, media and information technology sectors.

For the first quarter of 2010, Fusepoint's annualized revenue was $47.4 million and adjusted EBITDA was $3 million.

Fusepoint currently operates three data centers in Toronto, Vancouver and Montreal, and has generated an overall revenue compound annual growth rate (CAGR) of 18 percent and adjusted EBITDA growing at a CAGR of 83 percent.  The company offers services that allow customers to outsource their mission-critical IT infrastructure and application requirements

"The acquisition of Fusepoint is a step toward one of our most important goals to expand our geographic presence around the world," said Jim Ousley, Savvis chairman and chief executive officer. "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. Our best-in-class product set and strong vertical market focus meshes well with Fusepoint's fast growth and deep penetration of Canadian enterprises. Fusepoint has a great track record and extends Savvis' reach into the highly promising Canadian hosting market including Toronto, the financial center of Canada."

"We're pleased to become a part of the Savvis family, as we believe our offerings are very complementary and highly synergistic," said George Kerns, Fusepoint chief executive officer. "By folding our footprint into Savvis' global operations, we'll be able to better serve our customers, by providing them with a broader range of services and access to a global footprint with leading-edge technology."

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