Verizon To Acquire Terremark

In a move that will decisively reshape the rapidly evolving global business technology solutions market, Verizon Communications Inc. and Terremark Worldwide Inc. have announced a definitive agreement under which Verizon will acquire Terremark, a provider of managed IT infrastructure and cloud services, for $19.00 per share in cash, or a total equity value of $1.4 billion.

This transaction will accelerate Verizon’s “everything-as-a-service” cloud strategy by delivering a powerful portfolio of secure, scalable on-demand solutions to business and government customers globally through a unified enterprise IT platform and unique business cloud offerings that leverage the companies’ collective strengths.

Verizon plans to operate the new unit as a wholly owned subsidiary retaining the Terremark name and with Terremark’s current management team continuing to manage the company.

“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, 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.”

“This transaction, first and foremost, provides Terremark’s stockholders with the opportunity for immediate, maximum value and liquidity for their investment in our common stock. We are very proud of all we’ve accomplished in building and developing a world-class business that delivers industry-leading services. 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,” said Manuel D. Medina, Chairman and CEO, Terremark.

Headquartered in Miami, Terremark is an Infrastructure-as-a-Service provider with a proven track record of delivering cloud-based resources with the high levels of security and availability in the industry.