Case Studies: Fusepoint Acquisition by Savvis Fact Sheet

Overview:

The sale of M/C Venture Partners’ portfolio company, Fusepoint, Inc., a privately held managed hosting and collocation services company, to Savvis, Inc. (Nasdaq: SVVS), a cloud infrastructure and hosted IT solutions provider closed on June 16, 2010. The transaction represents one of the more successful managed hosting and collocation services exits by a venture firm in recent years.

Savvis and Fusepoint both hold leadership positions within the hosting and collocation services industry. The transaction combines highly complementary organizations to provide enhanced opportunities for new and existing clients. These include access to a consolidated North American footprint and enterprise-class managed service offerings for clients. The transaction is expected to create significant cost synergies and revenue opportunities.

Fusepoint Summary:

• M/C Venture Partners was the sole institutional investor and controlling shareholder in Fusepoint.
• M/C Venture Partners invested approximately $30 million in Fusepoint to fund an aggressive growth strategy involving expansion of the company's operations and the acquisition of key Canadian assets that solidified the company’s position in the market.
• Headquartered in Toronto, Fusepoint operates data centers in Toronto, Vancouver and Montreal.
• Well-positioned in the Canadian hosting market, which is still in its early stages of growth, Fusepoint has more than 330 marquee customers.
• The company has experienced strong growth in recent years, with compounded revenue growth of 18 percent and compounded adjusted EBITDA growth of 83 percent since 2006.
• For the first quarter of 2010, Fusepoint generated annualized revenue of $47.4 million and adjusted EBITDA $12.0 million.

Terms of Deal:

The principal terms of the transaction include the following:

• The base all-cash consideration for Fusepoint’s stock was valued at $124.5 million, or 10.4x annualized Q1 2010 EBITDA.