Savvis, a provider of cloud infrastructure and hosted IT offerings for enterprises, has agreed to acquire privately held Canadian tech firm Fusepoint, for $124.5m in cash, in a move to expand its geographical presence in Canada.
Fusepoint, a portfolio company of M/C Venture Partners, provides managed IT and colocation services to enterprises in Canada. It operates three data centres in Toronto, Vancouver and Montreal, and has more than 330 marquee customers. The three data centres have a total of more than 40,000 sellable square feet, with Toronto the largest at 28,000 sellable square feet.
Jim Ousley, chairman and chief executive officer of Savvis, said: The acquisition of Fusepoint is a step toward one of our most important goals to expand our geographic presence around the world. Our largest customers have been asking us to expand into Canada, and the acquisition of Fusepoint allows us to do so in a seamless and efficient manner.
“Our best-in-class product set and strong vertical market focus meshes well with Fusepoint’s fast growth and deep penetration of Canadian enterprises. Fusepoint has a great track record and extends Savvis’ reach into the highly promising Canadian hosting market including Toronto, the financial centre of Canada.
The acquisition, which is subject to customary closing conditions, is expected to close early this summer. Savvis plans to finance the acquisition from available cash and an upsize in its existing revolver.
