Verizon to bid for cloud provider Terremark

The $1.4 billion buyout would bolster Verizon's cloud services to businesses

Verizon Communications plans to buy cloud service provider Terremark Worldwide for about US$1.4 billion in a deal that could significantly expand its cloud offerings for enterprises.

The carrier expects to launch a tender offer between Feb. 10 and Feb. 17 for all shares of Terremark's common stock. The boards of directors of both companies have approved the transaction, but it is subject to Terremark shareholders tendering a majority of the company's stock, as well as regulatory approvals. Three stockholders have already agreed to tender a total of 27.6 percent of the stock, the companies said in a press release. Verizon expects to close the deal late in this quarter. Its offer of $19 per share represents a 35 percent premium over Terremark's closing share price on Thursday.

Terremark offers collocation, managed infrastructure and cloud computing services from 13 data centers in the U.S., Europe and Latin America. It serves large enterprises and U.S. government agencies with on-demand computing resources. Verizon, with 220 data centers in 23 countries, offers some cloud-based services today through its Verizon Business division. The carrier said Thursday it is moving toward an "everything-as-a-service" delivery model.

Verizon Business provides fat network pipes around the world to many large enterprises and is beginning to leverage those connections to provide services. For example, last year Verizon announced plans for a computing-as-a-service product designed to let subscribers easily move workloads between their own infrastructures and Verizon's. Earlier last year, the carrier launched a cloud-based storage service, relying at first on Nirvanix, an experienced vendor in the field.

If the Terremark acquisition is completed, Verizon will run the Miami-based business as a wholly owned subsidiary and maintain its name and current management team, the companies said.

In after-hours trading late Thursday, Terremark's shares on the Nasdaq (TMRK) were up $5.00 at $19.07. Verizon's stock (VZ) was down $0.02 to $36.47 on the New York Stock Exchange.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesservicesMergers / acquisitionstelecommunicationCarriersTerremark WorldwideVerizon Communications

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?