Based in Thousand Oaks, California, Savvis’s CDN services business has approximately 50 employees and over 100 customers, including Microsoft. The division, which recorded sales of about $15m in the first nine months of 2006, provides applications aimed at improving the performance, reliability, and reach of clients’ online content.
According to Savvis, the sale will help to fund the development of four new data centers to be built in the US during 2007. The sites will be located in Atlanta, New York, Santa Clara, and Washington DC, and are expected to cover 180,000 square feet of raised floor space. Savvis said the new centers will begin to generate revenue in the fourth quarter of 2007 and will add $50m to the company’s total sales in their first 12 months of operation.
For full-year 2007, Savvis has forecast sales of between $815m and $835m, which the company said would represent pro forma revenue growth of between 10% and 13% over the previous year. The figures have been adjusted to take into account the sale of the CDN services operation.
