Savvis Communications, an Internet and data service provider, has raised $20 million in equity funding, bringing its total to $178 million, the company said.
Constellation Ventures, a unit of investment bank Bear Stearns, supplied the financing and will receive a seat on Savvis's board of directors. The Herndon, Va.-based company, which provides telecom services such as hosting, VPN (virtual private network) and Internet services to businesses, will use the cash to expand. Under terms of the agreement, Constellation Ventures will receive 26.7 million shares of Savvis stock, or an 8 percent voting stake in the company, and the firm has the option to buy 10 million additional shares.
Savvis' customers include the New York Stock Exchange, the Montreal Derivatives Exchange, the Chicago Board Options Exchange and Fitch Ratings. Savvis announced last March that it received $158 million from Welsh, Carson, Anderson & Stowe and other investors.