In a bid to accelerate its "everything-as-a-service" cloud strategy, Verizon Communications agreed to acquire Terremark, a global provider of managed IT infrastructure and cloud services, for $19.00 per share in cash, or a total equity value of $1.4 billion.
Verizon plans to operate the new unit as a wholly owned subsidiary retaining the Terremark name and with its current management team continuing to manage the company.
Terremark, which is headquartered in Miami, operates 13 data centers in the U.S., Europe and Latin America (Miami, Dallas, Wash. D.C., Santa Clara, Bogota, Saol Paolo, Santo Domingo, Amsterdam, Brussels, Madrid and Istambul. It provides secure cloud computing, colocation, and managed hosting services. For its most recent quarter, Terremark reported revenue of $84.9 million, a 22% increase over the previous year.
Verizon currently operates more than 220 data centers across 23 countries, including 19 premium centers and five smart centers. Verizon combines integrated communications and IT solutions, professional services expertise with high IQ global IP and mobility networks to enable businesses to securely access information, share content and communicate.
The acquisition offer represents a premium of 35 percent per share over the closing price of Terremark prior to the announcement.
"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," said Lowell McAdam, president and chief operating officer of Verizon. "Our collective vision will foster innovation, enhance business processes and dynamically deliver business intelligence and collaboration services to anyone, anywhere and on any device."http://www.verizonbusiness.com
http://www.terremark.com
- Terremark was founded by Manuel Medina in 1980. He has served as CEO and Chairman of the Board since that time.
