Source:
Cable & Wireless USA, Inc. and Cable & Wireless Internet Services, Inc., together with certain of their subsidiaries, (together 'CWA') today announced that they have accepted a bid submitted by SAVVIS Communications Corporation (NASDAQ:SVVS) ('SAVVIS') in the court-supervised sale of their hosting and IP solutions businesses. Under terms of the accepted bid, SAVVIS will acquire substantially all of the CWA assets for $155 million in cash and assumed liabilities of approximately $12.4 million, subject to court and certain regulatory approvals.
CWA will seek court approval for the proposed sale transaction with SAVVIS at a hearing scheduled for 10 AM on January 23, 2004 at the U.S. Bankruptcy Court in Phoenix, Arizona. If approved at that time, the sale transaction is expected to close in February.
SAVVIS, one of the largest global managed service providers, delivers IP VPNs (Internet protocol virtual private networks), managed hosting and Internet services to enterprises around the world through an IP infrastructure spanning 45 countries.
CWA will continue normal operations pending completion of this proposed sale. CWA remains focused on its core competencies of hosting and IP services while delivering uninterrupted service to its customers.
John S. Dubel, CWA's chief executive officer, said: "Both CWA and SAVVIS are excited about this acquisition and are committed to growing the combined business. Fulfilling the needs of our customers remains our number one objective. The conclusion of the auction represents a very positive outcome for our customers as well as for our creditors. Our products and market position are strong, our technology is leading edge, and our commitment to providing outstanding customer service is firm. We look forward to completing the sale transaction."
On December 8, 2003, CWA announced that it had entered into an asset purchase agreement with an affiliate of Gores Technology Group, LLC for the sale of its hosting and IP solutions businesses. In accordance with the terms of this agreement and to facilitate a sale transaction, CWA filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code. In compliance with Section 363 of the Bankruptcy Code, qualifying bidders then had an opportunity to submit higher and better offers for CWA's evaluation through a court-supervised competitive bidding process. SAVVIS was chosen as the winner among seven bidders at a two-day auction concluded on January 22, 2004, by CWA's financial advisor, The Blackstone Group, pursuant to the sales procedures approved by the U.S. Bankruptcy Court. The sale proceeds from this process will be applied toward certain outstanding liabilities.