It has been reported that Savvis Inc. has signed an agreement to buy the Canadian IT Company Fusepoint. The deal has been signed for $124.5 million in cash to expand Fusepoint's presence in Canada.

Fusepoint is a portfolio Company of M/C Venture Partners and provider of managed IT and colocation services to enterprises in Canada. Currently, it is operating three data centers in Toronto, Vancouver and Montreal. It has more than 330 marquee customers.

Savvis plans to finance the acquisition from available cash and an upsize in its existing revolver led by Wells Fargo Capital Finance LLC, a unit of Wells Fargo & Co, the Company said.

Savvis shares fell 4 percent, to $18 in morning trade on Nasdaq. Fusepoint had $41.7 million in revenue last year and is on track to increase that to $47.4 million in 2010, based on its first-quarter results.

Jim Ousley, Savvis Chairman and Chief Executive Officer said, "Our largest customers have been asking us to expand into Canada, and the acquisition of Fusepoint allows us to do so in a seamless and efficient manner".

Fusepoint's largest data centre is in Toronto, has 28,000 sellable square feet and the Company is expecting to close the deal early this summer.