High speed Internet company CenturyLink, Inc. (NYSE:CTL) has acquired cloud computing company SAVVIS, Inc. (NASDAQ:SVVS) for $2.5 billion. This acquisition deal values Savvis at $40 per share, which is an 11% premium on the company’s stock price as of yesterday. CenturyLink is the third largest telecommunications provider company in the U.S.
Through the acquisition, CenturyLink believes they will be able to effectively compete against AT&T and Verizon. Savvis’ shareholders will get $30 per share in cash and $10 in CenturyLink stock. CenturyLink will become the largest managed hosting provider through the deal. Between the two companies, they now have 48 data centers across North America, Europe, and Asia. Savvis will be integrated into CenturyLink as one large hosting operations unit that Savvis CEO James Ousley will oversee.