Savvis, a CenturyLink company, announced Tuesday that it has entered an agreement with Greenwood Village-based Ciber under which Savvis will purchase certain assets of Ciber’s Global IT Outsourcing business for $7 million in cash.
The assets include client and vendor relationships, infrastructure, technology and facilities spanning several countries.
In addition, Savvis expects to hire approximately 750 people who currently support Ciber’s ITO business.
Savvis plans to provide ITO clients with continued IT outsourcing support in addition to offering enhanced capabilities, including cloud services.
Ciber will continue to provide clients full lifecycle application development and outsourcing solutions, including system design, implementation and managed services, partnering with Savvis to leverage its expertise and resources in the physical infrastructure, the companies said in a statement.
The transaction is expected to close in the fourth quarter of 2012 .
“The acquisition of Ciber’s global ITO business will complement Savvis’ existing ITO assets by expanding the operations capabilities for application management services and help desk support,” said Jim Ousley, chief executive of Ciber and president of CenturyLink’s Enterprise Market Group. “Ciber’s ITO customers will also benefit by gaining access to Savvis’ global footprint, services and account teams.”
The $7 million in cash is to be handed over at the time of closing and Savvis will give future consideration in the form of a cash earn-out payment based on results through December 2013 .
Howard Pankratz: 303-954-1939, hpankratz@denverpost.com or
