Savvis pays $7M for pieces of Ciber IT outsourcing business

Savvis, CenturyLink's (NYSE: CTL) cloud- and data-center subsidiary, on Tuesday struck a $7 million deal to acquire various assets of the Ciber (NYSE: CBR) global IT Outsourcing (ITO) business.

Among assets Savvis gains are a new set of client and vendor relationships, infrastructure, technology and facilities located in a number of global markets. Meanwhile, Ciber ITO will be able to augment its offerings with  Savvis' growing portfolio of cloud- and data-center services.

Savvis will hire about 750 employees who already support Ciber's ITO business. In June, Savvis announced it added 220,000 square feet of domestic, international data center space.

Besides data center and cloud, existing ITO customers would be able to access other CenturyLink services such as fiber and copper-based Ethernet and IP/VPN.

"The acquisition of Ciber's global ITO business will complement Savvis' existing ITO assets by expanding the operations capabilities for application management services and help desk support," said Jim Ousley, chief executive of Ciber and president of CenturyLink's Enterprise Market Group. "Ciber's ITO customers will also benefit by gaining access to Savvis' global footprint, services and account teams."

Ciber said in a release announcing the transaction that it will continue to provide its customers full lifecycle application development and outsourcing solutions, including system design, implementation and managed services, partnering with Savvis to leverage its expertise and resources in the physical infrastructure.

While this acquisition is new, Ciber and Savvis are hardly strangers. Last July, the companies established a partnership where Ciber would leverage Savvis' global data centers and network capacity for its customers.

After meeting third-party consents and other customary closing conditions, the two companies expect the transaction to close in the fourth quarter of 2012.

For more:
- see the release
- The Denver Post has this article

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