(Ping! Zine) – Savvis, Inc., 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 $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 $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 $150 million. The revolving credit facility was amended, among other things, to modify certain financial covenants to accommodate the increased borrowings.