Phone carrier expected to expand in business computing
Phone carrier Verizon will buy technology service provider Terremark for $1.4bn.
The cash deal values Terremark at $19 a share, which is a 35% premium over the company’s closing share price. Terremark’s board has unanimously approved the deal.
Verizon said the acquisition is part of a broader strategy to make customers’ information available across devices and locations.
It also adds corporate and government customers to their client list, the company added.
Miami-based Terremark runs 13 data centres in the US, Europe and Latin America which offer data security and recovery services besides storage and cloud computing.
Verizon president and chief operating officer Lowell McAdam said with the acquisition, the company hopes to "deliver business intelligence and collaboration services to anyone, anywhere and on any device."
Verizon will make offers to buy the shares from 10 February through 17 February.
Terremark CEO Manuel Medina said, "At the end of the day it’s the same business, but now with a big brother.”
Verizon said it expects to finalise the purchase in the first three months of 2011.