M&A Deal Summary

Level 3 Communications Acquires Savvis - Content Delivery Network Business

On December 26, 2006, Level 3 Communications acquired internet software and services company Savvis - Content Delivery Network Business from Savvis for 135M USD

Acquisition Highlights
  • This is Level 3 Communications’ 1st transaction in the Internet Software and Services sector.
  • This is Level 3 Communications’ 9th largest (disclosed) transaction.
  • This is Level 3 Communications’ 12th transaction in the United States.
  • This is Level 3 Communications’ 1st transaction in California.

M&A Deal Summary

Date 2006-12-26
Target Savvis - Content Delivery Network Business
Sector Internet Software and Services
Buyer(s) Level 3 Communications
Sellers(s) Savvis
Deal Type Divestiture
Deal Value 135M USD

Target

Savvis - Content Delivery Network Business

Thousand Oaks, California, United States
Savvis - Content Delivery Network (CDN) Business is a provides solutions that improve performance, reliability, scalability and reach of customers’ online content.

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Buyer(S) 1

Buyer

Level 3 Communications

Broomfield, Colorado, United States

Category Company
Founded 1884
Sector Communications
Employees12,500
Revenue 8.2B USD (2015)
DESCRIPTION
Level 3 Communications' corporate headquarters in Broomfield, Colorado.
Level 3 Communications' corporate headquarters in Broomfield, Colorado.

Level 3 Communications, Inc. is a provider of local, national and global communications services to enterprise, government and carrier customers. Level 3’s portfolio of managed solutions includes fiber and infrastructure solutions, IP-based voice and data communications; wide-area Ethernet services; video and content distribution; data center and cloud-based solutions. Level 3 Communications, Inc. was originally established in 1884 and is headquartered in Broomfield, Colorado.


DEAL STATS #
Overall 15 of 21
Sector (Internet Software and Services) 1 of 2
Type (Divestiture) 4 of 4
State (California) 1 of 2
Country (United States) 12 of 15
Year (2006) 5 of 5
Size (of disclosed) 9 of 14
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-09-07 Software Spectrum

Garland, Texas, United States

Software Spectrum, Inc. is a provider of business-to-business IT solutions and services, with particular expertise in the selection, purchase and management of software.

Sell $287M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-01-03 Broadwing Communications

Austin, United States

Broadwing Communications. In June 2003, Cequel III partnered with the former Corvis Corporation to acquire Broadwing and its nationwide all-optical network from Cincinnati Bell. Subsequently, Cequel III turned over management responsibilities to Broadwing's executive team, while maintaining a relationship with the company for the provision of longhaul voice, video, and data services to Suddenlink. Broadwing was acquired by Level 3 Communications in 2007.

Buy $1.4B

Seller(S) 1

SELLER

Savvis

Town & Country, Missouri, United States

Category Company
Founded 1995
Sector Information Technology
DESCRIPTION

Savvis, Inc. is a provider of cloud infrastructure and hosted IT solutions for enterprises.


DEAL STATS #
Overall 1 of 1
Sector (Internet Software and Services) 1 of 1
Type (Divestiture) 1 of 1
State (California) 1 of 1
Country (United States) 1 of 1
Year (2006) 1 of 1
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-03-10 Cable & Wireless Internet

San Francisco, California, United States

Cable & Wireless Internet, Inc. is a global e-Business Delivery Network using hosting, content delivery, networking and application services to help companies improve their customers' on-line experience by making Web applications run faster and more reliably and scale globally, resulting in more successful e-Business transactions.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-06-01 Fusepoint

Mississauga, Ontario, Canada

Fusepoint, Inc. is an independent provider of managed IT and colocation services to enterprises in Canada. Fusepoint offers services that allow customers to outsource their mission-critical IT infrastructure and application requirements.

Buy $125M