CenturyLink agreed to acquire Savvis

CenturyLink agreed to acquire Savvis, a leading web hosting and service provider, for $2.5bn in cash and stock in a deal that highlights the accelerating push by US telecommunications groups into the emerging market for ‘cloud-based’ business computing services.

The deal also represents a further significant diversification for CenturyLink away from its rural US telecom roots. Earlier this month, CenturyLink became the third-largest US telecommunications group after AT&T and Verizon Communications when it completed the purchase of Qwest Communications.

Verizon recently completed its $1.4bn purchase of Terremark Worldwide, another leading cloud computing service provider, in a deal that focused bankers’ attention on the mergers and acquisition opportunities in cloud services market and the potential for telecommunications groups to add a new revenue offsetting the steady decline in the number of fixed lines they serve.

CenturyLink reported in February that its fourth-quarter earnings fell 2.2 per cent reflecting lower revenue as the impact of access line losses more than offset gains at its high-speed internet business. Read More....

Tag ; telecommunications, fixed lines, internet business, purchase of Qwest Communications. services market, CenturyLink,

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