Telecoms giant Cable & Wireless is splashing out £600 million for the bulk of US web-hosting firm Exodus Communications.

The company, which employs about 150 people at its internet solutions site on the Windmill Hill Business Park in West Swindon, is buying 30 data centres run by Exodus.

Exodus Communications is currently in Chapter 11 bankruptcy proceedings, including 26 in the US and two in London.

Exodus runs and services websites for a host of multi-national clients and counts Vodafone, General Electric and MSN Hotmail among its customers.

C&Wireless said the deal would help it take full advantage of the forecast growth in the managed hosting and web services markets.

The group built up its share in the sector when it bought Digital Island, a smaller internet services company, in May.

Chief executive Graham Wallace said the deal would help Cable & Wireless create a unique offering for corporate customers.

"This acquisition meets our key investment criteria of value, strategic fit, strong management and high quality products, service and customer base," he said.

Earlier this month, Cable & Wireless reported a sharp drop in full-year profits from £537 million to just £83 million before one-off costs.

The group also announced plans to return a large slice of its £4.7 billion cash pile to shareholders.

It plans to buy back up to 15 per cent of its shares.

It will then offer remaining inves-tors a special 11.5p per share dividend, a move which could cost up to £1.7 billion.