Verizon to buy cloud services IT firm Terremark for $1.4 billion

Verizon Communications, the second-largest telecom operator in the US, yesterday disclosed plans to acquire IT infrastructure and cloud services provider Terremark Worldwide Inc, for $1.4 billion in cash.

The proposed acquisition of Terremark is the largest purchase by New York-based Verizon since it acquired MCI in 2005 for $6.8 billion.

Based in Miami, Terremark is an Infrastructure-as-a-Service provider that delivers cloud-based resources with the highest levels of security.
 
Operating 13 data centres in the US, Europe and Latin America, Terremark combines secure cloud computing, colocation, and managed hosting services into a seamless hybrid environment. Its enterprise cloud platform provides some of the world's largest companies and US government agencies with on-demand access to secure and reliable computing resources.

Verizon will pay $19 per share for Terremark, representing a premium of 35 per cent to Terremark's closing stock price on 27 January.

Verizon, which operates more than 220 data centres across 23 countries, combines integrated communications and IT solutions, professional services expertise with high IQ global IP and mobility networks to enable businesses to securely access information, share content and communicate. 

It telco is rapidly transforming to a cloud-based 'everything-as-a-service' delivery model that will put the power of enterprise-grade solutions.