Savvis Communications Corp. (Herndon, VA), a managed Internet protocol services provider, has agreed to purchase the commercial business of WAM!NET Inc. (Eagan, MN), a provider of content-management and delivery services. Savvis will acquire certain assets and customers of WAM!NET's commercial business, in return for $3 million paid at closing and additional consideration to be paid in Q2 2004, based on revenue performance from the WAM!NET business at that time.

In 2002, WAM!NET's commercial-business revenues were slightly less than $30 million. This amount does not include revenue derived from its Government Services or 4-Sight businesses, which Savvis is not acquiring. If annualized revenues are at the 2002 level in April 2004, the purchase price will be approximately $16 million.

With the acquisition, Savvis will reportedly gain a significant set of enterprise clients in key vertical markets, such as print and publishing, and retail and consumer goods, while strengthening its current presence in the media and entertainment sector. The acquisition is also said to significantly increase Savvis' share of the content-management and digital-delivery market.