Cloud Computing: Savvis to Buy Ciber Global ITO Business
July 31, 2012
Grazed from Sys Con Media. Author: Elizabeth White.
Savvis and Ciber have entered into an agreement under which Savvis will purchase certain assets of Ciber’s global IT Outsourcing (ITO) business for $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.
According to Jim Ousley, CEO of Savvis and president of CenturyLink’s Enterprise Markets Group, "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."
The assets include client and vendor relationships, infrastructure, technology and facilities spanning several countries. In addition, Savvis expects to hire the approximately 750 people who currently support Ciber’s global ITO business…
Savvis plans to provide ITO clients with continued IT outsourcing support in addition to offering its enhanced capabilities, including cloud services. It is expected that clients will benefit from the direct relationship with Savvis, as well as the enhanced communications services provided through CenturyLink’s robust global network.
Ciber will continue to provide clients full lifecycle application development and outsourcing solutions, including system design, implementation and managed services, partnering with Savvis to leverage its expertise and resources in the physical infrastructure.
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.
The agreement builds on the partnership the two companies formed in July 2011 that enabled Ciber to leverage Savvis’ worldwide data centers and network capacity to serve the growing needs of Ciber’s clients. With more than 50 data centers throughout North America, Europe and Asia, Savvis is an industry leader in global infrastructure hosting and enterprise cloud computing environments.