Savvis: A History of Growth, Acquisitions, and Integration into CenturyLink
The evolution of Savvis represents a significant chapter in the development of global IT services and managed hosting. From its early days as a specialized provider to its eventual absorption into a telecommunications giant, the company's trajectory was defined by aggressive strategic acquisitions and a constant expansion of its global infrastructure.
Key Facts
- IPO: Listed on NASDAQ as "SVVS" in February 2000.
- Major Acquisition: Acquired by CenturyLink in 2011 for approximately $2.5 billion.
- Global Reach: Expanded into EMEA and Asia Pacific with data centers in London and Singapore.
- Infrastructure: Reached a total sellable global footprint of 2 million square feet by late 2011.
- Strategic Shift: Transitioned from network services to Global IT services in 2005.
Early Growth and Strategic Acquisitions
Savvis began its journey toward public ownership in 1999 when it was acquired by Bridge Information Systems. After one year, it was spun off as a public company, launching its initial public offering (IPO) on the NASDAQ stock exchange in February 2000 under the ticker "SVVS".
Following its IPO, the company pursued a strategy of organic growth and targeted acquisitions to bolster its capabilities. In 2002, Savvis acquired WAM!NET, a provider of media application services and content management. This was followed in 2003 by the purchase of Intel Online Services' customers and hosting operations.
A pivotal expansion occurred in 2004 when Savvis purchased the assets of Cable & Wireless America for $155 million in cash, while assuming roughly $12.5 million in liabilities. This massive acquisition included 15 data centers, the customers of Exodus Communications, the Tier-1 Internet backbone (previously owned by MCI), and a content delivery network (CDN)—a system of distributed servers that deliver web content to users based on their geographic location—from Digital Island.
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Evolution of Identity and Global Expansion
As the company's scope widened, so did its branding. In 2005, Savvis Communications Corporation became Savvis, Inc., a change intended to reflect its shift from providing simple network services to offering comprehensive Global IT services.
To establish a stronger international presence, Savvis expanded into the EMEA (Europe, Middle East, and Africa) and Asia Pacific regions. This included opening a data center in Singapore in 2007 and another in London in 2008. Further North American growth continued in June 2010 with the acquisition of the Canadian technology firm Fusepoint, which added data centers in Vancouver, Montreal, and Toronto.
Divestiture of CDN Services
In 2006, the company streamlined its operations by selling its content delivery network (CDN) services business to Level 3 Communications for $135 million. This deal encompassed the intellectual property, customer contracts, and network assets associated with the CDN business.
Market Leadership and the CenturyLink Acquisition
By 2011, Savvis had solidified its position as a leader in the cloud sector. Gartner, a prominent IT research and advisory firm, placed Savvis in the "Leaders" quadrant of its 2010 Magic Quadrant for Web Hosting and Cloud Infrastructure-as-a-Service (IaaS)—a cloud computing model that provides virtualized computing resources over the internet. Savvis was recognized alongside major players like AT&T, Verizon Business, and Rackspace for its "ability to execute" and "completeness of vision".
During this period, Savvis also launched the Savvis Alliances Program for channel partners and partnered with Bharti Airtel Limited to bring managed hosting and cloud computing to India.
The company's independent journey culminated on April 27, 2011, when CenturyLink, Inc. agreed to acquire Savvis for approximately $2.5 billion. The buyout valued Savvis at $40 per share, consisting of $30 in cash and $10 in CenturyLink common stock per share.
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Final Integration and Branding
Following the acquisition, Savvis operated as an autonomous managed-hosting entity known as "Savvis, a CenturyLink company." In early 2014, the name was changed to CenturyLink Technology Solutions to better align the business unit with its parent company. By early 2015, the entity was fully absorbed into CenturyLink's IT Services group and unified under the single brand name "CenturyLink".
Shortly before this full integration, in September 2011, the company expanded its facilities in Boston, Atlanta, and Toronto, and opened new data centers in Piscataway, New Jersey, and Seattle. These additions provided 100,000 square feet of new raised floor space, bringing the total global footprint to 2 million square feet.
| Year | Event | Key Detail |
|---|---|---|
| 2000 | IPO | Listed on NASDAQ as SVVS |
| 2004 | Major Acquisition | Purchased Cable & Wireless America assets |
| 2006 | Divestiture | Sold CDN business to Level 3 Communications |
| 2011 | Acquisition | Acquired by CenturyLink for ~$2.5 billion |
| 2015 | Full Integration | Absorbed into CenturyLink IT Services group |
Frequently Asked Questions
When did Savvis go public?
Savvis launched its initial public offering (IPO) in February 2000 and was listed on the NASDAQ stock exchange under the symbol "SVVS".
What was the value of the CenturyLink acquisition?
CenturyLink acquired Savvis for approximately $2.5 billion USD, valuing the company at $40 per share.
Which international markets did Savvis enter?
Savvis expanded its global footprint by opening data centers in Singapore (2007) and London (2008), and acquiring the Canadian firm Fusepoint in 2010.
What happened to the Savvis brand name?
The name evolved from Savvis Communications Corporation to Savvis, Inc. in 2005, then to CenturyLink Technology Solutions in 2014, and was finally fully absorbed into the "CenturyLink" brand in 2015.
What was the total size of Savvis' data center footprint by 2011?
Following expansions in five cities including Seattle and Piscataway, Savvis reached a total sellable global footprint of 2 million square feet.