Monday, December 25, 2006

Level 3 to Acquire SAVVIS CDN -- 7th Acquisition in 2006

Level 3 Communications agreed to acquire the Content Delivery Network (CDN) services business of SAVVIS, for $135 million in cash. The deal includes certain network elements, customer contracts, and intellectual property used in SAVVIS' CDN business.

SAVVIS' CDN services business, based in Thousand Oaks, California, with approximately 50 employees and over 100 customers, provides solutions that improve performance, reliability, scalability and reach of customers' online content. The business was initially launched in 1996 as Sandpiper Networks -- the world's first content delivery network. It has a globally distributed infrastructure in more than 20 countries.

SAVVIS' CDN business had approximately $15 million in revenue for the nine months ending September 30, 2006.

"The largest customers of CDN services rely on a combination of capabilities to support their businesses. These include services like CDN, IP transit, wavelengths, metro transport, and colocation. Upon completion of this transaction, Level 3 believes that it will be the only CDN services provider with a single source, full portfolio of end-to-end content distribution solutions, and will be in a unique position to offer a range of building blocks to meet these customers' needs," said Kevin O'Hara, president and chief operating officer of Level 3.

http://www.level3.comhttp://www.savvis.netIn October 2006, Level 3 Communications agreed to acquire Broadwing Corporation in a cash and stock deal valued at $1.4 billion. The deal adds to a series of acquisitions by Level 3 this year, including WilTel, Progress Telecom, ICG Communications, TelCove and Looking Glass Networks.