As tech companies look ahead to expansion into new market segments, they are often faced with a buy-or-build dilemma. They could either invest in the internal development required to compete in the space, or get out the corporate checkbook and buy a company that already does.
For Verizon, that choice was clear.
The telecom giant has entered into an agreement with Terremark to purchase the cloud-services vendor for $1.4 billion in a deal expected to close by the end of the quarter.
“Our strategic vision in this area has always been to provide a complete stack of next-generation services with security throughout all the layers,” said Verizon President and COO Lowell McAdam in announcing the deal. “By acquiring Terremark, we accelerate our capabilities to do just that.”
Verizon plans to operate Terremark as a wholly owned subsidiary, and keep its management team in place.
Datamation has the details on Verizon’s acquisition of Terremark.