CenturyLink to buy Savvis for $2.5 billion
April 27, 2011
Phone company CenturyLink Inc. says it agreed to buy Savvis for $2.5 billion in cash and stock, just days after it completed the acquisition of rival Qwest Communications International Inc.
Century Link will also assume $700 million in Savvis debt. The deal values Savvis at $40 per share, an 11 percent premium to its closing price Tuesday.
Under the agreement's terms, Savvis stockholders will receive $30 per share in cash and $10 in shares of CenturyLink stock.
The transaction requires approval from antitrust regulators and Savvis stockholders. It's expected to close in the second half of this year. CenturyLink says the deal will allow it to grow its hosting and cloud computing services to business customers.
CenturyLink is based in Monroe, La. Savvis is headquartered in St. Louis.
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