Verizon to buy Terremark for $1.4 billion

Jan 28, 2011

(AP) -- Verizon Communications Inc. said Thursday it is buying Terremark Worldwide Inc., a provider of information technology services, for $1.4 billion in cash.

Verizon plans to pay $19 per share for Terremark Worldwide Inc. That represents a 35 percent premium to Terremark's closing on Thursday before the deal was announced. Terremark's shares jumped $5.06, or 36 percent, to $19.11 in after-hours trading as a result.

Terremark provides "cloud" computing services, which lets companies store data and software on remote servers instead of their own computers. It also provides technology infrastructure services.

Verizon said the deal helps speed up its strategy to offer "everything-as-a-service" to businesses and government clients.

Terremark, based in Miami, runs 13 data centers in the U.S., Europe and Latin America.

The boards of both companies have approved the deal. Holders of 27.6 percent of Terremark's outstanding voting shares have agreed to tender their shares into Verizon's tender offer, which will begin between Feb. 10 and Feb. 17. Verizon expects to close the tender offer late in the first quarter.

Shares of Verizon dipped 2 cents to $36.47 in after-hours trading.

Explore further: Alibaba surges in Wall Street debut (Update)

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Frontier to buy rural Verizon lines for $5.3B

May 13, 2009

(AP) -- Verizon Communications Inc. said Wednesday it reached a deal to sell scattered phone service areas outside its main Northeastern and Californian territories for $5.3 billion in stock.

NetApp to buy Data Domain in $1.5 billion deal

May 21, 2009

(AP) -- Data storage company NetApp Inc. said Wednesday it agreed to buy data backup and disaster recovery systems provider Data Domain Inc. for $25 per share in cash and stock, or about $1.5 billion.

Verizon 1st-qtr profit, revenue beat expectations

Apr 27, 2009

(AP) -- Verizon Communications Inc. said Monday its earnings grew 5 percent in the first quarter, boosted by its acquisition of Alltel Corp. and strong demand for its wireless, Internet and TV services.

Emerson to buy Avocent for $1.2 billion

Oct 06, 2009

(AP) -- Emerson Electric Co. said Tuesday it has agreed to buy Avocent Corp. for about $1.2 billion in cash, a move the company says will offer customers better management of their data centers.

Recommended for you

Alibaba makes Wall Street debut

Sep 19, 2014

Alibaba made its long-awaited Wall Street debut Friday on the heels of a record stock offering that opens the door to global expansion for the Chinese online retail giant.

Alibaba IPO to boost employee fortunes to $8 bn

Sep 19, 2014

Employees of Chinese e-commerce giant Alibaba will see their fortunes swell to nearly $8 billion as the company prepares a massive US stock offering that could be valued at $25 billion.

Alibaba mega IPO caps founder Jack Ma success tale

Sep 19, 2014

When Jack Ma founded Alibaba 15 years ago he insisted the e-commerce venture should see itself as competing against Silicon Valley, not other Chinese companies. That bold ambition from a time when China was ...

User comments : 0