US telecoms giant Verizon (NYSE: VZ) plans to acquire US network access point (NAP) operator Terremark Worldwide (Amex: TWW), according to a Verizon press release.
Verizon said it will begin in February a tender offer to acquire all the common shares of Terremark for US$1.4bn. The two companies' boards of directors have approved the deal, with Verizon expecting to close it late in Q1.
According to Verizon, the deal will accelerate its "everything-as-a-service" cloud strategy, allowing the company to deliver solutions to business and government customers worldwide through a unified enterprise IT platform.
Terremark will become a wholly owned subsidiary of Verizon, continue to operate under the same name and keep its current management team.
Headquartered in Miami, Terremark operates 13 data centers in Latin America and Europe. Verizon operates more than 220 data centers in 23 countries.