©IDG Communications, Inc. Photo contributed by Matthew Mikaelian.
IDG News Service (San Francisco Bureau), 1/27/11
Verizon Communications plans to buy cloud service provider Terremark Worldwide for about US$1.4 billion in a deal that could significantly expand its cloud offerings for enterprises.
The carrier expects to launch a tender offer between Feb. 10 and Feb. 17 for all shares of Terremark’s common stock. The boards of directors of both companies have approved the transaction, but it is subject to Terremark shareholders tendering a majority of the company’s stock, as well as regulatory approvals. Three stockholders have already agreed to tender a total of 27.6 percent of the stock, the companies said in a press release. Verizon expects to close the deal late in this quarter. Its offer of $19 per share represents a 35 percent premium over Terremark’s closing share price on Thursday.