US telecoms and cableco Verizon announced yesterday that it has agreed to acquire Terremark Worldwide, a US provider of IT infrastructure and cloud services.
Verizon will pay US$19 per share in cash, which represents a total equity value of US$1.4bn….
US telecoms and cableco Verizon announced yesterday that it has agreed to acquire Terremark Worldwide, a US provider of IT infrastructure and cloud services.
Verizon will pay US$19 per share in cash, which represents a total equity value of US$1.4bn. This represents a premium of over 35% more than the US$14.05 price that Terremark shares closed on the Nasdaq yesterday.
Verizon said in a statement that it had also entered agreements with three shareholders in Terremark to tender their shares in its offer. These shares represent 27.6% of the outstanding voting shares in Terremark.
Verizon said it was represented by Goldman Sachs and the law firm Weil, Gotshal and Manges, adding that Terremark was represented by Credit Suisse and the law firm Greenberg Traurig.
Verizon expects to start its tender offer for all the shares in Terremark between 10 February and 17 February. It expects to close the offer late in Q1 2011.
The president and COO of Verizon, Lowell McAdam, said that cloud computing had altered fundamentally the way that companies procure, deploy and manage their IT services.
She said: “Our collective vision will foster innovation, enhance business processes and dynamically deliver business intelligence and collaboration services to anyone, anywhere and on any device.”
The TelecomFinance Conference 2011 saw some radical claims being made about how cloud computing could affect the industry.
Matt Key, the managing director of the enterprise division at Cable & Wireless Worldwide, said that cloud computing could represent “the beginning of he death of the classic telco”.
