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.