Verizon to buy Terremark for USD1.4bn
(M&A Navigator Via Acquire Media NewsEdge) US wireless operator Verizon Communications (NYSE:VZ) will buy IT services firm Terremark Worldwide (NASDAQ:TMRK) for USD1.4bn (EUR1bn), the companies said in a joint statement.
The deal values Terremark at USD19 per share, representing a premium of 35% to its closing share price on Thursday.
Three shareholders, with a combined stake of 27.6% in Terremark, have already promised to offer their share under the bid, which will be running from 10 to 17 February.
According to Verizon, which plans to keep the Terremark name, the acquisition will help it expand services to corporate and government customers.
Terremark projected in November last year that sales in fiscal 2011 would range between USD350m and USD353m.
Verizon is advised in this transaction by Goldman Sachs (NYSE:GS) and law firm Weil, Gotshal & Manges, while Credit Suisse Securities and Greenberg Traurig are acting as consultants to Terremark.
Country: USA, Sector: IT/Online Services Target: Terremark Worldwide Inc Buyer: Verizon Communications Inc Deal size in USD: 1.4bn Type: Corporate acquisition Status: Agreed Buyer advisor: Weil, Gotshal & Manges LLP, Goldman Sachs Group Inc ((Comments on this story may be sent to [email protected])) (c) 2011 M2 COMMUNICATIONS
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