Verizon largely focuses its multibillion-dollar company on broadband delivery and wireless communications services, claiming more than 94 million U.S. customers, a news release stated. However, Verizon confirmed the proposed buyout of Terremark is a concrete entry point into managing offerings for data storage, cloud computing and business intelligence.
Lowell McAdam, Verizon president and chief operating officer, said in a news release that the acquisition would spur innovation and enhance delivery of BI to “anyone, anywhere on any device.”
“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 McAdam.
Based in Miami, Terremark operates data centers for IT infrastructure and cloud services to business and government entities in the U.S., Europe and Latin America, the company website stated. Verizon said in a news release it plans to operate Terremark as a wholly owned subsidiary, with Terremark’s management team staying in place.
Boards of directors from both companies approved the deal, which is anticipated to be tendered in mid-February at $19 per share in cash of all common stock, or an equity value of $1.4 billion. The deal is subject to customary closing conditions and is expected by Verizon to close late in the first quarter of 2011.