UPDATE 1-Savvis to buy Canada's Fusepoint for $124.5 mln

* To finance deal from available cash, upsize in revolver

* Savvis shares down as much as 8 percent

June 1 (Reuters) - IT services company Savvis Inc SVVS.O signed a definitive agreement to acquire Fusepoint Inc for $124.5 million in cash to expand its presence in Canada.

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.

The deal is expected to close early this summer, it added.

Fusepoint, a provider of managed IT and colocation services to enterprises in Canada, is a portfolio company of M/C Venture Partners. The venture capital firm is focused on the communications, media and information technology sectors.

Fusepoint operates three data centers in Toronto, Vancouver and Montreal. It has more than 330 marquee customers.

Savvis shares fell 4 percent, or 65 cents to $18 in morning trade on Nasdaq. (Reporting by S. John Tilak in Bangalore; Editing by Vyas Mohan)