Verizon Communications Inc., looking to expand its cloud computing capabilities, has acquired Miami-based IT infrastructure and cloud services provider Terremark for $1.4 billion.
The deal will accelerate Verizon's everything-as-a-service cloud strategy, the company said in a press release. Terremark's infrastructure-as-a-service delivers cloud-based services to various enterprise sectors. The company has 13 data centers across the U.S., Latin America and Europe, which will be integrated as a wholly owned subsidiary retaining the Terremark name and with Terremark's current management team in place.
Cloud computing continues to fundamentally alter the way enterprises procure, deploy and manage IT resources, and this combination helps create a tipping point for 'everything-as-a-service,' Lowell McAdam, president and chief operating officer of Verizon, said in a statement. Our collective vision will foster innovation, enhance business processes and dynamically deliver business intelligence and collaboration services to anyone, anywhere and on any device.
The deal equates to $19.00 per share in cash. Verizon is anticipating it will tender an offer between Feb.10 and Feb. 17 for all shares of common stock of Terremark. The price will represent a premium of 35 percent over yesterday's closing price. Both the boards of directors at Verizon and Terremark have unanimously approved the transaction.
This agreement represents an exciting opportunity to accelerate our strategy and serve our enterprise and government customers with even greater innovation on a global scale with Verizon's resources and extensive reach. We will continue to work with leading hardware, software, systems integrator and carrier partners to build on our unique business model, Manuel D. Medina, chairman and chief executive of Terremark, said in a statement.
Upon news of the acquisition, Terremark's stock soared nearly 35 percent from $14.05 to $18.92, Verizon's stock was down one percent from $36.49 to $36.14.
To contact the reporter for this story email Gabriel Perna at g (dot) perna (at) ibtimes.com or call (646) 461 6920