Ciber Sells Certain Help Desk Business Assets to Savvis
Ciber (NYSE: CBR), the well-known IT consulting firm, has sold a tiny slice of its business (involving help desk services and application management services) to Savvis for up to $20 million. This is Ciber’s latest effort to sell off non-core assets, strengthen its balance sheet and restore growth at the $1.1 billion company. Just be careful of what you read: Some media reports suggest Savvis has acquired all of Ciber. That just isn’t true. Here’s a reality check.
As part of the latest deal, Ciber’s Global IT Outsourcing business (i.e., the help desk and application management services) shift to Savvis, a top 100 cloud services provider. Roughly 750 of Ciber’s 6,500 employees will join Savvis. (The 6,500 headcount figure is from Yahoo Finance). Ciber will receive $7 million up-front and another $13 million in early 2013 if the global ITO business meets certain financial metrics for 2012, according to an SEC filing.
For Savvis, this is the latest move to diversify its cloud services. Another recent move involved a cloud services partnership with Avnet Technology Solutions, the massive distributor.
Ciber (NYSE: CBR) is set to announce Q2 2012 results sometime today (Aug. 7). The company’s Q1 2011 revenues were $241 million, and annual revenues for 2011 were $1.1 billion. Ciber in March 2012 sold off its federal division to CRGT Inc. We’ll check the latest earnings later today to see if the company is showing signs of renewed growth.