Verizon to buy cloud provider for $US1.4 billion

An agreement between Verizon and Terremark will see the communications company make and offer for all the latter’s shares for $US19.00 per share, a premium of35% above the previous closing price.

Three shareholders (with a total of 27.6% of Terremark shares) have agreed to tender their holdings, and the deal has the unanimous support of the Terremark board. The offer will run from February 10 to February 17.

Terremark operates 13 data centres in the US, Europe and Latin America, and its customers include US government agencies and some of the world’s largest companies. This will add to Verizon’s 220 data centres in 23 countries as it continues its shift to an "everything-as-a-service" model.

"Our collective vision will foster innovation, enhance business processes and dynamically deliver business intelligence and collaboration services to anyone, anywhere and on any device," said Lowell McAdam, president and chief operating officer of Verizon.

Manuel Medina, chairman and chief executive officer of Terremark, said "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."

"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,"he added.

Terremark will operate as a wholly-owned subsidiary of Verizon, under the management of the current team.