Is Savvis positioning to be bought?

WSJ reports on the rumors that Savvis is a takeover target.

NEW YORK (Dow Jones)--Savvis Inc. (SVVS) Chief Executive Jim Ousley said Wednesday that his company is generating more interest from bankers and inquiring parties as takeover speculation ramps up following recent deals in the data-storage sector.

Ousley acknowledged the company has had more strategic discussions than usual but isn't feeling pressure to act in the short term. He said Savvis will continue to operate just like it did before Verizon Communications Inc.'s (VZ) recent deal for rival Terremark Worldwide Inc. (TMRK) was announced.

Here is Savvis selling their capabilities.


Savvis knows cloud.

Savvis can be found in the Leaders quadrant in Gartner’s Magic Quadrant for Cloud Infrastructure as a Service and Web Hosting.

According to Gartner, “For the past five years, the Web hosting market has been evolving toward on-demand infrastructure provisioned on a flexible, pay-as-you-go basis; the majority of hosting customers now obtain at least some of their infrastructure on demand, and most new hosting contracts include on-demand services. The market for traditional Web hosting services, especially for Internet and intranet Web content and applications, continues to grow.”

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A lot of this being driven by Verizon's acquisition of Terremark a Savvis competitor.

Verizon's $1.4 billion deal to acquire Terremark has prompted analysts to speculate Savvis could be the next takeover target within the data-storage industry. Shares of Savvis--a data center operator that provides web hosting, network and other so-called cloud-computing services--have more than doubled since June and hit a fresh three-year high on Wednesday.

"Bankers are swarming," Ousley joked. "I had no problems getting offers for lunch today" during his visit to New York City.

Reuters reports on the potential buyout.

Shares of the company have gained 20 percent in the last 10 days on speculation over a potential buyout. [ID:nN28282267]

Data centre operators -- an important part of the fledgling cloud computing infrastructure -- have seen a spurt of deals in the last one year, the latest being Verizon Communications' (VZ.N) buy of Terremark Worldwide (TMRK.O).