Savvis Buys Tiny Piece of Ciber; Total Bill: $20 Million
Savvis, a top 100 cloud service provider (CSP) owned by CenturyLink (NYSE: CTL), has acquired a small piece of Ciber (NYSE: CBR) for up to $20 million. Here’s what Savvis did — and didn’t — get from the deal.
Savvis is only taking on Ciber’s global IT outsourcing business (Ciber Global ITO) for $7 million in cash and up to $13 million in earn-outs, depending on the business’s final performance for 2012, an SEC filing indicates. Savvis also takes on about 750 Ciber Global ITO employees. (Ciber has 6,500 employees overall, according to Yahoo Finance).
Ciber’s Global ITO employees, now part of Savvis, focus on application management services and help desk support, Savvis indicated.
Savvis is making multiple moves in the IT outsourcing and cloud services markets. The company recently signed an extensive partnership with Avnet Technology Solutions, a major distributor that’s seeking to empower VARs and MSPs with cloud services. Savvis also sees the opportunity to cross-sell and upsell CenturyLink network services to Ciber Global ITO customers.