By Justin Lee, January 28, 2011
A global map of Terremark's data center locations
(WEB HOST INDUSTRY REVIEW) -- IT infrastructure provider Verizon Communications (www.verizon.com) announced on Thursday it will acquire cloud services provider Terremark (www.terremark.com) for $1.4 billion.
Verizon says it will likely begin the tender offer between February 10 and February 17 for all shares of common stock of Terremark, which is a total of 35 percent per share over Thursday's closing price.Terremark's board of directors unanimously approved the deal, as it was also approved by the directors of Verizon present and voting.
Verizon has also entered into agreements with three stockholders of Terremark to tender their shares into the offer for a total of about 27.6 percent of the outstanding voting shares of Terremark. The tender offer is expected to close late in the first quarter of 2011.
The acquisition will accelerate Verizon's everything as a service cloud strategy by delivering a strong portfolio of highly secure, scalable on-demand solutions to business and government customers globally through a unified enterprise IT platform and usiness cloud offerings.
Verizon plans to operate the new unit as a wholly owned subsidiary under the Terremark brand and with Terremark's current management team continuing to manage the company.
"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," says Lowell McAdam, president and chief operating officer 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."
Headquartered in Miami, Terremark provides cloud, colocation and managed hosting services out of the 13 data centers in the US, Europe and Latin America data centers it operates.
The company's enterprise cloud platform provides large companies and US government agencies with on-demand access to secure and reliable computing resources.
Verizon provides business solutions such as broadband and other wireless and wireline communications services for mid-sized and large enterprises and government agencies.
The company currently operates more than 220 data centers across 23 countries, including 19 premium centers and five smart centers.
Verizon was represented by Goldman Sachs and Weil, Gotshal & Manges, while Terremark was represented by Credit Suisse Securities and Greenberg Traurig.
Article Source : http://www.thewhir.com/web-hosting-news/012811_Verizon_Communications_to_Acquire_Terremark_for_14B permits republishing here
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