Feeds

C&W buys Exodus biz

Asset rich, cash rich

  • alert
  • submit to reddit

Next gen security for virtualised datacentres

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

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?