Verizon to bid for cloud provider Terremark

The $1.4 billion buyout would bolster Verizon's cloud services to businesses

Verizon Communications plans to buy cloud service provider Terremark Worldwide for about US$1.4 billion in a deal that could significantly expand its cloud offerings for enterprises.

The carrier expects to launch a tender offer between Feb. 10 and Feb. 17 for all shares of Terremark's common stock. The boards of directors of both companies have approved the transaction, but it is subject to Terremark shareholders tendering a majority of the company's stock, as well as regulatory approvals. Three stockholders have already agreed to tender a total of 27.6 percent of the stock, the companies said in a press release. Verizon expects to close the deal late in this quarter. Its offer of $19 per share represents a 35 percent premium over Terremark's closing share price on Thursday.

Terremark offers collocation, managed infrastructure and cloud computing services from 13 data centers in the U.S., Europe and Latin America. It serves large enterprises and U.S. government agencies with on-demand computing resources. Verizon, with 220 data centers in 23 countries, offers some cloud-based services today through its Verizon Business division. The carrier said Thursday it is moving toward an "everything-as-a-service" delivery model.

Verizon Business provides fat network pipes around the world to many large enterprises and is beginning to leverage those connections to provide services. For example, last year Verizon announced plans for a computing-as-a-service product designed to let subscribers easily move workloads between their own infrastructures and Verizon's. Earlier last year, the carrier launched a cloud-based storage service, relying at first on Nirvanix, an experienced vendor in the field.

If the Terremark acquisition is completed, Verizon will run the Miami-based business as a wholly owned subsidiary and maintain its name and current management team, the companies said.

In after-hours trading late Thursday, Terremark's shares on the Nasdaq (TMRK) were up $5.00 at $19.07. Verizon's stock (VZ) was down $0.02 to $36.47 on the New York Stock Exchange.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesservicestelecommunicationCarriersMergers / acquisitionsVerizon CommunicationsTerremark Worldwide

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Brand Post

Shining a light on creativity

MSI has long pushed the boundaries of invention with its ever-evolving range of laptops but it has now pulled off a world first with the new MSI Creative 17.

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?