Verizon paid $19 a share for Terremark's stock, which closed at $14.05 Thursday. Terremark will now become a wholly owned subsidiary under Verizon, keeping its name, its employees and headquarters in Miami.
"At the end of the day it's the same business, but now with a big brother,'' said Terremark CEO Manuel D. "Manny" Medina.
And, Medina says, that big brother will help grow Terremark "very quickly,'' with interest in expanding the business further with the federal government, Asia Pacific and Latin America. Terremark, which Medina founded in 1982 as real estate firm, operates 13 data centers in the United States, Europe and Latin America.
The purchase shows Verizon's serious push to grow its cloud computing business -- jargon for renting computing storage and power from another provider. Verizon operates more than 220 data centers across 23 countries.
Verizon was one of Terremark's largest clients. In June, Verizon Business made a deal to lease 25,000 square feet of co-location space in Terremark's NAP of the Americas in Miami and the NAP of the Capital Region in Culpeper, Va.
Back then, Medina said in a statement: "Our agreement with Verizon signifies a defining moment for Terremark.''