G. P. Welsh Carson Gets 12% of Spin Out –

Welsh Carson Anderson & Stowe, the largest shareholder in financial news company Bridge Information Systems Inc., will receive a minority stake in its soon-to-be-public subsidiary, networking company Savvis Communications Corp.

Welsh Carson general partner Tom McInerney said the buyout firm will own 12% of Savvis Communications after the initial public offering. Bridge will continue to hold a 62.1% stake in Savvis. The sale of Savvis will not affect Welsh Carson’s 40% ownership of Bridge.

Reston, Va.-based Savvis provides global data networking and Internet services to businesses. The company has 800 customers, including eBAY and Charter Communications.

Savvis will offer 12.8 million shares at $22 to $25 per share. Proceeds from the offering will total $321.5 million if the underwriters exercise their over-allotment option in full, based on a midpoint price of $23.50.

The Savvis IPO, which comprises about 14.5% of the company, is expected to raise approximately $279 million net. The company will use the funds toward the purchase of Bridge’s network assets and for general corporate purposes.

McInerney said he will serve as one of two Welsh Carson members on Savvis’ six-member board.

Welsh Carson in 1995 bought Bridge in an all-cash deal worth $140 million. The company reported 1999 revenue of $1.1 billion.

Other investors in Bridge include State Street, ADP, Dow Jones, and a number of investment banks and wealthy individuals.