Verizon announced that it is acquiring IT infrastructure and cloud services provider Terremark Worldwide in a move the company says will "decisively reshape the rapidly evolving global business technology solutions market."
The agreement is for Verizon to get Terremark for $1.4 billion, at $19.00 a share.
"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 COO of 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."
Terremark Chairman and CEO Manuel D. Medina 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."
"We are very proud of all we've accomplished in building and developing a world-class business that delivers industry-leading services," he added. "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."
Verizon will operate the new unit as a wholly owned subsidiary retaining the Terremark name, and with Terremark's current management team.
The Board of Directors of both companies have unanimously approved the transaction.