Verizon Buys Cloud Service Provider Terremark for $1.4B

  • Cloud Computing
  • Verizon
NEW YORK and MIAMI – Highlighting the growing dependence of business computing on broadband, Verizon announced that it will acquire Terremark, a provider of managed IT infrastructure and cloud services, for $19.00 per share in cash, or a total equity value of $1.4 billion - a premium of 35 percent over market prices. Verizon plans to issue a tender offer in February for all shares of Terremark's common stock and close the tender offer late in the first quarter of 2011.

The transaction accelerates Verizon's "everything-as-a-service" cloud strategy by delivering a portfolio of secure, scalable, on-demand solutions to business and government customers through a unified enterprise IT platform. Verizon plans to operate the new unit as a wholly owned subsidiary, retaining the Terremark name and with Terremark's current management team continuing to manage the company.

The acquisition indicates the growing acceptance of cloud computing by business and government customers. (Terremark is heavily involved in the government sector.) As research firm In-Stat comments, "Organizations are moving some applications to the cloud because some prominent providers offer greater reliability. For example, Google Apps offers 99.9 percent guaranteed uptime in its SLAs, which is impressive and a significant improvement for most organizations. In-Stat believes this assuages a great many fears that IT managers have had about moving mission-critical applications to the public cloud."

A Tipping Point for 'Everything as a Service'
"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 operates 13 data centers in the U.S., Europe and Latin America, combining secure cloud computing, colocation and managed hosting services. Its Enterprise Cloud platform provides some of the world's largest companies and U.S. government agencies with on-demand access to secure and reliable computing resources.


Read what others have to say, and share your own thoughts with the community.

2000 characters remaining

© 2022 Broadband Properties, LLC

Privacy Policy

Web Design and Web Development by Buildable