• United States

Savvis buys WamNet

Aug 01, 20032 mins
Financial Services IndustryMergers and AcquisitionsWi-Fi

Savvis Communications this week announced it is acquiring WamNet for $16 million.

WamNet is a content management and delivery service provider that offers hosted applications for the media industry. Savvis is acquiring all of the service provider’s customers and most of its data centers around the world.

Savvis is not acquiring WamNet’s IP network, which it leases from other carriers. Instead, Savvis expects to migrate all of WamNet’s data centers to its own global IP network by year-end, says Rob McCormick, president and CEO of Savvis.

WamNet offers hosted applications to enterprise users in the print publishing and media markets in seven countries, McCormick says. Savvis’ network spans 45 countries.

Savvis is set to pay WamNet $3 million when the deal closes. The ISP will pay an additional $13 million by the second quarter 2004 if revenues from WamNet are on track with its 2002 numbers.

The content delivery service provider brought in $30 million in revenues in 2002. McCormick says Savvis will pay more for WamNet if revenues are higher, or less for the company if revenues are down.

The deal is expected to close in August.

Savvis is not buying WamNet Government Services, which will eventually change its name. Savvis is acquiring the WamNet brand name and all intellectual property associated with the commercial division.