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Savvis Buys Up Bankrupt Web Host C&W Wireless
"The two companies have enough scale to be highly profitable," McCormick says, noting combined revenue of $700 million. "Together we're going to have a massive IP infrastructure company that . . . is unmatched in the industry." Savvis' assets include an IP network that spans 110 cities in 45 countries, six managed data centers, 800 employees and 4,700 business customers. "We do not have plans to further downsize [C&W]," McCormick says. "But there will be some consolidation between the two companies in back-office functions over time." "We do know that the savings we're looking for come from combining things like our backbone networks and [points of presence]. We'll go through a city-by-city analysis to figure out who has the right POP and where," McCormick says. "We don't do [network] design work or upfront consulting, and [C&W] has a very established practice in those areas," he says. "Our customers will have immediate access to their consultative services." |
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