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Savvis to purchase Ciber’s Global ITO business

Madura McCormack | Aug. 10, 2012
The $7 million transaction is scheduled to close in the fourth quarter of 2012.

Savvis will purchase assets of Ciber's global IT sourcing [ITO] business, the cloud infrastructure and hosted IT solutions provider announced on 1 August.

 According to the announcement, the company is purchasing certain assets of Ciber, a global IT consulting company.

 Savvis said in its statement that it will pay US$7 million in cash at the date of closing with possible cash earn-out payment considerations until December 2013. This means that Ciber may receive more payout from Savvis if the profit margin from the acquisition is higher than first projected-this will only occur until December 2013.

 The assets purchased by Savvis include-infrastructure, client vendor relationships, technology and facilities in several countries.

 The agreement builds on the partnership between the two companies back in July 2011 that enabled Ciber to leverage Savvis' worldwide data centres and network capacity to serve the growing needs of Ciber's clients.

 Savvis also expects to hire the approximately 750 people who currently support Ciber's global ITO business.

 "The acquisition of Ciber's global ITO business will complement Savvis' existing ITO assets by expanding the organisations capabilities for application management services and help desk support," said Jim Ousley, chief executive officer of Savvis and president of CenturyLink's Enterprise Markets Group.

 Savvis said it plans to continue providing ITO clients with IT outsourcing support.  The $7 million transaction is scheduled to close in the fourth quarter of 2012.

 

 

 

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