News
Verizon to Acquire Terremark
January 2011 by Marc Jacob
In a move that will decisively reshape the rapidly evolving global business technology solutions market, Verizon Communications Inc. and Terremark Worldwide Inc. announced a definitive agreement under which Verizon will acquire Terremark, a global provider of managed IT infrastructure and cloud services, for $19.00 per share in cash, or a total equity value of $1.4 billion.
Pursuant to the agreement, Verizon anticipates that it will commence a tender offer between Feb.10, 2011, and Feb. 17, 2011, for all shares of common stock of Terremark. The tender offer price constitutes a premium of 35 percent per share over today’s closing price. The transaction is subject to the valid tender of a majority of the shares of Terremark; the expiration or early termination of the Hart-Scott-Rodino antitrust waiting period; and other customary closing conditions. The Board of Directors of Terremark has unanimously approved the transaction, and the transaction was unanimously 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, representing approximately 27.6 percent of the outstanding voting shares of Terremark. Verizon expects to close the tender offer late in the first quarter of 2011.
This transaction will accelerate Verizon’s “everything-as-a-service” cloud strategy by delivering a powerful portfolio of highly secure, scalable on-demand solutions to business and government customers globally through a unified enterprise IT platform and unique business cloud offerings that leverage the companies’ collective strengths.
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.
Headquartered in Miami, Terremark is a widely recognized Infrastructure-as-a-Service leader with a proven track record of delivering cloud-based resources with the highest levels of security and availability in the industry. Operating 13 data centers in the U.S., 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 U.S. government agencies with on-demand access to secure and reliable computing resources.
