Savvis, After Denying Hiring Bankers, Inks $2.5 Bln Sale to CenturyLink

I hate it when companies fudge.

In March, I reported that Savvis was in talks to sell itself and had hired Qatalyst Partners. Well I was apparently wrong about Qatalyst but I was right about the sales talks. Today, Savvis announced that it has agreed to sell to CenturyLink for $2.5 billion. CenturyLink is also assuming about $700 million in debt.

Savvis’s sale has long been expected. In January, Verizon Communications announced its $1.4 billion takeover of Terremark Worldwide. Time Warner, five days later, then followed up with a $230 million deal for Navisite.

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Savvis Denies Hiring Qatalyst To The Wall Street Journal

Last week, I reported that Savvis, the data center operator, had talked to Qatalyst Partners, the investment bank founded by tech i-banker Frank Quattrone, about a possible sale. I cited three sources. I also included a separate person saying any hiring wasn’t definitive and another source saying that Savvis has been out hunting for a banker.

Basically, I gave you all the information that I had and even referred to it as “rumor.” A Savvis spokesman declined to comment in an email.

Savvis To Buy Fusepoint

M/C Venture Partners has agreed to sell Fusepoint Inc., a provider of managed IT and colocation services to enterprises in Canada, to Savvis Inc. (Nasdaq: SVVS). The deal was valued at $124.5 million in cash.

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