(The Hosting News) – In a move that is seen by analysts as a large investment into cloud computing, telecommunications company CenturyLink is set to purchase Savvis, an information technology firm that specializes in cloud.
Upon announcing the deal, CenturyLink Chief Executive Flen F. Post II stated, “The transaction creates a premier managed hosting and co-location provider with global scale in a high-growth sector, and is expected to be accretive to revenue growth and cash flow per share”.
The two and a half billion dollar deal gives CenturyLink more data centers worldwide. However, under the deal, CenturyLink will also take control of Savvis’ debt, which is around seventy million.
Through the acquisition, CenturyLink is relying on loans offered by Barclays Bank and Bank of America to help refinance debt accrued by Savvis.
When broken down, the deal accounts for CenturyLink purchasing Savvis for fourty dollars a share.
CenturyLink has been looking to increase its company size and also recently completed a more than ten million dollar acquirement of Qwest Communications, another large telecommunications firm.
CenturyLink is currently the third largest telecommunications company in the world.
Other companies in the industry have also been busy completing purchases to increase their investment into cloud computing. In January, Verizon Communications let it be known that they would acquire Terremark, a large provider of cloud services.
For more information on CenturyLink, visit: http://www.centurylink.com/
For more information on Savvis, visit: http://www.savvis.com