Feeds

C&W buys Exodus biz

Asset rich, cash rich

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

Cable & Wireless, the cash-rich UK telco, is
buying most of the assets of Exodus, the exceedingly cash-poor US managed web hosting firm in Chapter 11, for $850m cash.

The deal could be stymied if another bidder emerges, but very few telcos today could outgun C&W.

C&W is taking on 30 of Exodus' 44 hosting centres - 24 in the US, two in London and one apiece in Frankfurt and Tokyo - adding an additional 4m sqft of floor space.

The company will also take on most of Exodus' clients. It reckons that it needs to pump in an additional US$250m to take the Exodus business to cashflow break even, and that the business will contribute to earnings per share and free cash flow in the financial year ending 31 March 2005.

Exodus produced a Rolls-Royce managed hosting service at Rolls-Royce prices. The company spent billions of dollars of shareholders' money in building its network of data centres and captured 46 of the world's top 150 Web sites as customers.

In May, C&W bought Digital Island, another cash-strapped US hosting firm, for $340m. It says it can extract cost savings through synergies and cross sell products from its IP portfolio to its newly-enlarged customer base. ®

Related Stories

C&W slides away from ASP
C&W shells out $340m for Digital Island

Internet Security Threat Report 2014

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.