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SAVVIS Integrating CWA Assets

Carrier Hotels Staff Posted Mar 8, 2004

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SAVVIS Communications says it expects "substantial infrastructure and operating synergies" as it integrates the assets of Cable & Wireless America with its own network. SAVVIS closed on the purchase of CWA today after receiving federal regulatory approvals.

SAVVIS said it will eliminate jobs as part of the consolidation, and would "optimize' the hosting and network operations of CWA. SAVVIS assumed the leases on 15 former Exodus/Cable & Wireless data centers, but gave no specifics on its consolidation and whether all 15 would continue to be used.

SAVVIS said the acquisition adds more than 3,000 customers and the combined company is projected to have annualized revenues of approximately $700 million by year-end 2004. About 1,000 of those customers are believed to be hosting clients.

"We are moving swiftly to integrate the highly complementary SAVVIS and CWA assets, and apply our business model to the combined enterprise," said Rob McCormick, Chairman and Chief Executive Officer of SAVVIS. "We have added thousands of enterprise customers, high performance infrastructure, and outstanding consulting expertise. We are focused on continuing to provide the highest levels of service and a seamless transition for the CWA customer base.

"Going forward, we are excited to introduce this large base of enterprise customers to the benefits of virtualization as an option for high performance services and the potential for additional cost savings for their hosting, network and application services," McCormick added.