Savvis to Acquire Part of Ciber's IT Outsourcing Business
In 2011, Ciber, a global information technology company, leveraged Savvis' worldwide data centers and network capacity to cater to the needs of its clients. As a sequel to this partnership, Savvis has now decided to purchase certain assets of Ciber's global IT outsourcing business.
As a result of the partnership, Ciber's client and vendor relationships, infrastructure, technology and facilities spanning several countries and more will be taken over by Savvis.
"The acquisition of Ciber's global ITO business will complement Savvis' existing ITO assets by expanding the organization's capabilities for application management services and help desk support," said Jim Ousley, CEO at Savvis and president of CenturyLink's enterprise markets group.
While Ciber will leverage Savvis' expertise, resources in the physical infrastructure and will continue to provide clients with application development and outsourcing solutions, Ciber's ITO customers will also benefit by gaining access to Savvis' global footprint, services and account teams.
With more than 50 data centers throughout North America, Europe and Asia, Savvis is well known for its global infrastructure hosting and enterprise cloud computing environments.
Company officials said that the deal with Savvis is in keeping with Ciber's strategies to drive growth through partnerships with reputed players in the country. It also provides Ciber an opportunity to concentrate on its core offerings and market segments, helping deliver increased value to its shareholders.
Completion of the transaction is subject to the delivery of certain third-party consents and other customary closing conditions. The transaction is expected to close in the fourth quarter of 2012. Ciber is expected to receive $7 million in cash at the time of closing, plus additional future consideration in the form of a cash earn-out payment based on results through December 2013.
Savvis is also planning to hire the 750 people who currently support Ciber's global ITO business.
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Edited by Brooke Neuman