Savvis, a CenturyLink company (NYSE: CTL) and global leader in cloud infrastructure and hosted IT solutions for enterprises, and Ciber (NYSE: CBR), a global information technology consulting and managed services company, 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.
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.
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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.
“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, chief executive officer of Savvis and president of CenturyLink’s Enterprise Markets Group. “Ciber’s ITO customers will also benefit by gaining access to Savvis’ global footprint, services and account teams.”
“This action aligns with Ciber’s strategies to continue to narrow our focus on core offerings and market segments, and to drive growth through strategic partnerships with businesses that have scale and are leaders in the industry,” said Ciber Chief Executive Officer Dave Peterschmidt. “Our shareholders should see increased value as we concentrate on our core offerings. We will continue to provide global hosting and cloud solutions in partnership with Savvis where it benefits our clients.”