Verizon Communications
is acquiring Terremark Worldwide for $1.4 billion to enhance its cloud-computing
capabilities, the companies said Jan. 27.
The acquisition of the Miami-based
cloud services and data-center-hosting provider will expand Verizon's ability to
provide IT services to corporate customers. Terremark currently has 13 data
centers scattered throughout the United States, Europe and Latin America, and
offers IAAS (Infrastructure as a Service), security and managed services.
Verizon will be competing with major cloud-services players such as Amazon.
The deal would "accelerate
Verizon's 'everything-as-a-service' cloud
strategy," Lowell McAdam, Verizon's president and COO, said on a call with
investors on Jan. 28. Verizon currently operates more than 220 data
centers across 23 countries.
"We have viewed this space
for a long time as a place we want to grow our business," McAdam said.
Verizon will be tendering an
offer for all shares of Terremark at $19 a share between Feb. 10 and Feb. 17,
Fran Shammo, Verizon's CFO, said on the call. The price is a 35 percent premium
over Terremark's closing price of $14.05 just before the acquisition was
announced. The all-cash deal will increase Verizon's net debt by $2 billion,
Shammo said. The two-step merger is expected to close within 90 days, he said.
For more, read the eWeek article: Verizon Buys Terremark for $1.4B in Amazon Cloud Play.
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