Verizon To Acquire Terremark For $1.4 Billion
This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry
Verizon Communications Inc. (NYSE:VZ) plans to acquire Terremark Worldwide, Inc. (NASDAQ:TMRK) for $19 per share in a $1.4 billion deal. This is a 35% premium on the closing price of Terremark yesterday. Terremark is an IT services provider that focuses on data storage for large companies and government agencies.
Verizon was already a partner with Terremark. Verizon signed a deal for 25,000 square feet in Terremark’s data centers. Verizon was also selling Terremark’s hosting services. “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,’” stated Verizon COO and president Lowell McAdam. “Our collective vision will foster innovation, enhance business processes and dynamically deliver business intelligence and collaboration services to anyone, anywhere and on any device.”