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By Rich Miller
Carrier Hotels Editor
Posted Jan 22, 2004
Bankruptcy rules require competitive bidding for major assets, and SAVVIS was among six suitors submitting bids exceeding the value of the Gores deal. According to court documents, the bidders included SAVVIS, Gores and investment entities formed by Cerberus Capital Management, Du Pont Fabros, Leucadia National, Platinum Equity LLC, and One Equity Partners.
XO Communications said last week that it had submitted a bid for the C&W assets. In a court filing Thursday, Gores said XO itself did not submit a bid, but was listed as a "permitted assignee" by several bidders.
SAVVIS Communications is a managed services provider that delivers IP virtual private networks, hosting, and application services to businesses. SAVVIS said shareholders Welsh, Carson, Anderson & Stowe and Constellation Ventures will fund the purchase price and provide ongoing funding.
SAVVIS also said it plans to sell oits rights to acquire five C&W data center to Du Pont Fabros for $52 million, and then lease back space within those data centers for 15 years.
"We are extremely excited about joining Cable & Wireless America’s internet and complex hosting capabilities to our leading private network and hosting business, and we look forward to bringing new levels of service and quality to the combined customer base," said SAVVIS chairman and chief executive officer Rob McCormick. "The companies’ network and hosting operations are extremely complementary with one another and with the SAVVIS vision to provide the industry’s first truly virtualized managed services infrastructure."
"Both CWA and SAVVIS are excited about this acquisition and are committed to growing the combined business," said John Dubel, CWA's chief executive officer. "Fulfilling the needs of our customers remains our number one objective. The conclusion of the auction represents a very positive outcome for our customers as well as for our creditors.
"Our products and market position are strong, our technology is leading edge, and our commitment to providing outstanding customer service is firm," Dubel added. "We look forward to completing the sale transaction."
C&W announced its intention to exit the US hosting market back in June, and has since closed eight US data centers and reduced staffing by 1,000 workers. The company's US unit, Cable & Wireless America (CWA), filed for Chapter 11 protection Dec. 8 as part of an agreement to sell the hosting unit to Gores.
Gores will receive a total of $4 million in fees fot its efforts, and up to $1 million to cover expenses related to its puchase agreement.
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http://www.carrierhotels.com/news/2004/Jan/22/savvis_wins_cw_auction_print.html
SAVVIS wins C&W Auction
By Rich Miller
Carrier Hotels Editor
Posted Jan 22, 2004
SAVVIS Communications was the winning bidder in a two-day auction for the U.S. hosting assets of Cable & Wireless, with a bid of $155 million.
Bankruptcy rules require competitive bidding for major assets, and SAVVIS was among six suitors submitting bids exceeding the value of the Gores deal. According to court documents, the bidders included SAVVIS, Gores and investment entities formed by Cerberus Capital Management, Du Pont Fabros, Leucadia National, Platinum Equity LLC, and One Equity Partners.XO Communications said last week that it had submitted a bid for the C&W assets. In a court filing Thursday, Gores said XO itself did not submit a bid, but was listed as a "permitted assignee" by several bidders.
SAVVIS Communications is a managed services provider that delivers IP virtual private networks, hosting, and application services to businesses. SAVVIS said shareholders Welsh, Carson, Anderson & Stowe and Constellation Ventures will fund the purchase price and provide ongoing funding.
SAVVIS also said it plans to sell oits rights to acquire five C&W data center to Du Pont Fabros for $52 million, and then lease back space within those data centers for 15 years.
"We are extremely excited about joining Cable & Wireless America’s internet and complex hosting capabilities to our leading private network and hosting business, and we look forward to bringing new levels of service and quality to the combined customer base," said SAVVIS chairman and chief executive officer Rob McCormick. "The companies’ network and hosting operations are extremely complementary with one another and with the SAVVIS vision to provide the industry’s first truly virtualized managed services infrastructure."
"Both CWA and SAVVIS are excited about this acquisition and are committed to growing the combined business," said John Dubel, CWA's chief executive officer. "Fulfilling the needs of our customers remains our number one objective. The conclusion of the auction represents a very positive outcome for our customers as well as for our creditors.
"Our products and market position are strong, our technology is leading edge, and our commitment to providing outstanding customer service is firm," Dubel added. "We look forward to completing the sale transaction."
C&W announced its intention to exit the US hosting market back in June, and has since closed eight US data centers and reduced staffing by 1,000 workers. The company's US unit, Cable & Wireless America (CWA), filed for Chapter 11 protection Dec. 8 as part of an agreement to sell the hosting unit to Gores.
Gores will receive a total of $4 million in fees fot its efforts, and up to $1 million to cover expenses related to its puchase agreement.
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