CenturyLink on Friday announced completing its acquisition of Savvis, a provider of cloud infrastructure and hosted IT solutions for enterprises.
“This transaction helps us meet the accelerating demand for cloud-based services through a robust hosting presence, including 48 data centers in North America, Europe and Asia," said Glen F. Post, III, CEO and president of CenturyLink, in a statement. “CenturyLink is now positioned to address complex customer needs with our colocation, hosting and cloud products."
Monroe, La.-based CenturyLink closed the deal three months after acquiring Qwest Communications in a merger that created the third largest U.S. telecommunications provider with operations in 37 states.
CenturyLink previously said the cash and stock acquisition of Savvis was valued at around $2.5 billion or $40 per share.
CenturyLink expects the deal to improve its EBITDA (earnings before interest, taxes, depreciation and amortization), free cash flow and revenues. The company also expects to “realize approximately $70 million in full run-rate annual operating cost and capital expenditure synergies."
Under the agreement, Savvis stockholders will receive $30 per share in cash and 0.2479 of a share of CenturyLink common stock for each Savvis share held at the close of the deal. At closing, CenturyLink also prepaid about $546 million of Savvis’ credit facility debt.
Shares of CenturyLink (symbol: CTL) closed Monday at $37.83 on the New York Stock Exchange.