SAVVIS Communications (NASDAQ: SVVS), a leading global IT utility, today announced the expansion of their financing group with the purchase of $7.5 million of existing subordinated debt by GI Partners, a $526 million private equity fund. GI Partners acquired their position from long-time SAVVIS financing partner Welsh, Carson, Anderson & Stowe (WCAS). WCAS retains $120 million of the subordinated debt issue.
In March, SAVVIS closed on the acquisition of the assets of Cable & Wireless USA, Inc. and Cable & Wireless Internet Services, Inc. (together, with certain of their affiliates, “Cable & Wireless America” or “CWA”). SAVVIS issued $200 million of subordinated debt at that time to fund the purchase price and provide ongoing working capital for the CWA assets.
SAVVIS Chief Financial Officer Jeff Von Deylen commented, “We are delighted to welcome a firm with GI Partners’ expertise and track record to the roster of our key financing partners. Their investment is a clear show of confidence in the company’s business strategy and growth potential. SAVVIS has attracted top-caliber financing partners who have consistently supported the company’s development of a successful business model and its financial growth. As we continue to integrate the Cable & Wireless business, we remain fully committed to creating value for all of our investors.”
According to Rick Magnuson, GI Partners’ Executive Managing Director, “The combination of SAVVIS and CWA creates one of the world’s largest providers of managed hosting and IP infrastructure services. We are excited about investing in a company so poised for growth in those core sectors of the IT industry.”
Von Deylen continued, “As we indicated when announcing record revenues for the first quarter of 2004, SAVVIS expects to achieve annualized revenue of $700 million and annualized cost savings of $100 million by year-end 2004. We continue to forecast positive EBITDA in the third quarter and positive free cash flow by the end of the year.”
About GI PARTNERS
Headquartered in Menlo Park, CA, and with major offices in London, Los Angeles and Paris, Global Innovation Partners LLC is an international private equity fund providing expansion and acquisition financing for high growth businesses and technology-related real estate assets in North America and Europe. Since its formation in March 2001, GI Partners has closed over 25 transactions in the following sectors: disaster recovery, communications, IT services, media technology, and internet infrastructure. The fund was closed with $526 million in committed capital. For more information about GI Partners, please visit the group’s website at www.gipartners.com.
SAVVIS Communications (NASDAQ: SVVS) is a global IT Utility that leads the industry in delivering secure, reliable, and scalable hosting, network, and application services. SAVVIS’ strategic approach combines the use of virtualization technology, a utility services model, and automated software management and provisioning systems. This allows customers to focus on their core business while SAVVIS ensures the quality of their IT infrastructure. With its recent acquisition of the assets of Cable & Wireless America, SAVVIS becomes one of the worlds’ largest providers of IP computing services and the world’s third largest provider of hosting services. For more information about SAVVIS, visit: . For more information about end-to-end media services from SAVVIS’ WAM!NET division, visit: www.wamnet.com.
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from SAVVIS’ expectations. Certain factors that could affect actual results are set forth as risk factors in SAVVIS’ SEC reports and filings, including its annual report on Form 10-K for the year ended December 31, 2003, as filed with the Securities and Exchange Commission on February 24, 2004, and all subsequent filings. SAVVIS assumes no obligation to update or supplement forward-looking statements.