Savvis Buys Web Hosting Firm C&W Wireless

Savvis Communications has acquired bankrupt web hosting provider Cable & Wireless America as an opportunity not only to double its customer base C&W filed for Chapter 11 protection in December and Savvis was able to come up with $155 million to buy the company although they also will incur their $12.5 million in debt.

"The two companies have enough scale to be highly profitable," McCormick says, noting combined revenue of $700 million. "Together we're going to have a massive IP infrastructure company that . . . is unmatched in the industry."

Savvis' assets include an IP network that spans 110 cities in 45 countries, six managed data centers, 800 employees and 4,700 business customers.
"We do not have plans to further downsize [C&W]," McCormick says. "But there will be some consolidation between the two companies in back-office functions over time."

"We do know that the savings we're looking for come from combining things like our backbone networks and [points of presence]. We'll go through a city-by-city analysis to figure out who has the right POP and where," McCormick says.