INSIGHT REPORT CALENDAR

NEWSLETTER

Like this article?

Sign up to our free newsletter

Savvis to acquire Canadian-based Fusepoint

Savvis, a provider of cloud infrastructure and hosted IT solutions for enterprises, has entered into a definitive agreement to acquire Fusepoint, a portfolio company of M/C Venture Partners. 

Fusepoint is an independent provider of managed IT and co-location services to enterprises in Canada.

Under the agreement, Savvis will acquire Fusepoint for USD124.5m in cash, subject to a working capital adjustment.

For the first quarter of 2010, Fusepoint’s annualised revenue was USD47.4m. Adjusted Ebitda for the first quarter was USD3.0m, or USD12.0m on an annualised basis.

Fusepoint operates three data centres in Toronto, Vancouver and Montreal. The company has more than 330 marquee customers.

"The acquisition of Fusepoint is a step toward one of our most important goals to expand our geographic presence around the world," says Jim Ousley, Savvis chairman and chief executive officer (pictured). "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," adds 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."

The acquisition of Fusepoint, which is subject to customary closing conditions, is expected to close early this summer. Savvis plans to finance the acquisition from available cash and an upsize in its existing revolver led by Wells Fargo Capital Finance. 

Like this article? Sign up to our free newsletter

FEATURED

Tech Stocks

MOST RECENT

FURTHER READING