Cable & Wireless and its Digital Island subsidiary Friday said they have completed the acquisition of hosting provider Exodus Communications in a deal valued at $750 million.
The acquisition, which includes 26 data centers and substantially all of Exodus' U.S. customer contracts, was approved Jan. 17 by the U.S. Bankruptcy court.
Negotiations for Cable & Wireless to acquire several of Exodus' international data centers are still pending.
As of December, Exodus had 3,200 customers, according to a Cable & Wireless statement.
Exodus CFO Bill Austin will become CEO of the new division, which will combine the hosting business from Exodus, Digital Island and Cable & Wireless, the statement said. He will report to Don Reed, CEO of Cable & Wireless Global.
William Krause, chairman and CEO of Exodus, will act as an adviser to Cable & Wireless CEO Graham Wallace throughout the transition, which is expected to take about a month-and-a-half, an Exodus spokeswoman said.
Krause will remain chairman of the Exodus estate, which includes the remainder of its 44 data centers and other assets not purchased by Cable & Wireless, she said.
The division, which has an $800 million current annualized run rate, will brand services sold in the United States as "Exodus, a Service of Cable & Wireless." Elsewhere, the services will be sold under the Cable & Wireless brand.
"Cable & Wireless' financial strength, scale and world-class IP infrastructure ensures that Exodus' customers will get the quality and guaranteed continuity of service that they are seeking from providers of mission-critical services," Wallace said in the statement.
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