Skip to main content

Verizon to acquire Terremark for $1.4 billion

This move continues to move Verizon in the direction of implementing its “everything-as-a-service” cloud strategy by delivering a powerful portfolio of secure, scalable solutions to its portfolio of business and government customers.

Verizon plans to operate the new unit as a wholly owned subsidiary, retaining the Terremark name and with Terremark’s current management team continuing to manage the company.

“Cloud computing continues to fundamentally alter the way enterprises procure, deploy and manage IT resources, and this combination helps create a tipping point for ‘everything-as-a-service,'” said Lowell McAdam, president and chief operating officer of Verizon.  “Our collective vision will foster innovation, enhance business processes and dynamically deliver business intelligence and collaboration services to anyone, anywhere and on any device.”

Manuel D. Medina, chairman and CEO of Terremark, said: “This transaction, first and foremost, provides Terremark’s stockholders with the opportunity for immediate, maximum value and liquidity for their investment in our common stock.  We are very proud of all we’ve accomplished in building and developing a world-class business that delivers industry-leading services. This agreement represents an exciting opportunity to accelerate our strategy and serve our enterprise and government customers with even greater innovation on a global scale with Verizon’s resources and extensive reach. We will continue to work with leading hardware, software, systems integrator and carrier partners to build on our unique business model.”

Terremark is one of the larger Infrastructure-as-a-Service companies delivering cloud-based resources. Terremark operates 13 data centers in the U.S., Europe and Latin America. The company combines secure cloud computing, colocation and managed hosting services as a turn key solution.

Editors' Recommendations

Laura Khalil
Former Digital Trends Contributor
Laura is a tech reporter for Digital Trends, the editor of Dorkbyte and a science blogger for PBS. She's been named one of…
Verizon debuts new 4G smartphones and tablets

Surprising none, but impressing all, today at CES Verizon announced a new line of 4G products that the carrier will support. The 10 new 4G compatible products include two hotspots, two notebooks, two tablets and four new smartphones. All are set to debut later this year, and all will utilize Verizon’s 4G network, the largest 4G network in the country.

The devices announced are below.  Pricing and release dates have not yet been confirmed:

Read more
Dell to acquire InSite One, expanding its medical SaaS solution

InSite One will be combined with Dell's existing Unified Clinical Archive solution. Together the products will help medical professional more easily store and share data.

Terms of the deal were not disclosed.

Read more
Verizon will launch 4G LTE network on December 5

Looks like Verizon is going to deliver that 4G network it's been talking about for the past year. Today the company announced that this Sunday, it will begin the launch of the first 4G LTE network. Just to give you an idea of its capabilities, Verizon claims the new mobile broadband will offer speeds up to 10 times faster than its 3G network currently provides.

Before going any further, let’s get one thing out of the way: This isn’t technically 4G. According to the International Telecommunications Union, the service doesn’t meet the requirements. Verizon is aware of this, but says it doesn’t matter. “Whether we call it 4G or something else is really not that relevant. It is a quantum generational step up from what our customers experience today,” Verizon CTO Tony Melone said today in a press conference with reporters. And with download speeds of 5 to 12 mbps and upload speeds of 2 to 5 mbps, he wasn’t kidding. (Neither of the other providers advertising "4G" service, T-Mobile with HSPA+ and Sprint/Clear with WiMax, meet the ITU's strict 4G stipulations, either.)

Read more