Verizon acquires Terremark Worldwide for $1.4 billion

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Verizon acquires Terremark Worldwide for $1.4 billion

2011-04-11 21:22:11 GMT+7 (ICT)

NEW YORK (BNO NEWS) -- Verizon Communications Inc. on Monday closed its previously announced acquisition of Terremark Worldwide, Inc. for approximately 1.4 billion.

Terremark, which will continue to be based in Miami, Florida but operate as a wholly owned subsidiary of Verizon, is expected to help increase overall Verizon growth by accelerating the company's strategy to provide "everything-as-a-service" to business and government customers globally. 

The acquisition was completed via a short-form merger under Delaware law; therefore, no Terremark shareholder vote was required. In addition, Verizon said the acquisition would clear the way for the company to lead the rapidly evolving global managed IT infrastructure and cloud services market.

As a result of the merger, all outstanding shares of Terremark that were not tendered into the previously completed tender offer (except for shares held in the treasury of Terremark or by Verizon or Verizon Holdings, or shares for which appraisal rights are properly demanded) were converted into the right to receive $19 per share in cash without interest and subject to any required withholding of taxes, the same consideration paid to stockholders in the tender offer. 

"There is a fundamental shift under way in how enterprises consume IT resources, and concluding this transaction is a turning point in Verizon's push to provide integrated, enterprise-class cloud solutions and accelerate growth in this important segment," said Robert Toohey, president of Verizon Business. 

"In the coming months, we'll leverage our collective strengths to roll out a differentiated portfolio of secure, on-demand cloud computing solutions to be delivered through a unified enterprise IT platform."

With the closing of the transaction, Terremark's common stock will cease trading on NASDAQ as of market close on Monday and will no longer be listed on NASDAQ.

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