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January 28, 2011 4:40 PM

Verizon Buys Terremark; Weil, Greenberg Traurig Advise

Posted by Tom Huddleston Jr.

Verizon Communications is making a play to better compete in the cloud computing market. On Thursday, the telecommunications giant announced plans to acquire IT infrastructure and cloud services provider Terremark Worldwide Inc. for $1.4 billion.

According to a joint release from the companies, Verizon expects to commence a tender offer between February 10 and February 17. The company will pay $19 per share of Terremark--which will operate under its current name as a wholly owned subsidiary of Verizon.

Weil, Gotshal & Manges M&A practice cochair Frederick Green represented Verizon on the acquisition, along with corporate partner Michael Lubowitz. Green tells The Am Law Daily that Weil has advised Verizon on corporate matters for more than 15 years, including working on the 1996 merger of Bell Atlantic Corporation with NYNEX Corporation. The firm also has represented the New York-based company on litigation matters, including a current federal lawsuit involving former subsidiary Idearc, which is claiming $9 billion in damages as a result of its spin-off from Verizon. 

Verizon's general counsel is Randal Milch.

Terremark is represented by a Greenberg Traurig team led by corporate partners Jaret Davis and Clifford Neimeth. Corporate partner Ira Rosner, tax partner Mindy Leathe, IP partner Manuel Valcarcel, antitrust partner Nancy Hawkins, government contracts partner Richard Moorhouse, and real estate partner Toni Wise also are working on the deal. Greenberg has advised Terremark on several matters in recent years, including a November bond financing and a 2009 $420 million offering in securitized notes. Davis led the firm's efforts on both of those transactions.

Adam Smith, Terremark's chief legal officer, served as the primary in-house attorney on the sale.

Terremark, based in Miami, operates 13 data centers in the U.S., Europe, and Latin America. According to The New York Times, Verizon has a history with Terremark, having acquired 25,000 square feet of the company's data centers last year. Verizon also has sold Terremark web hosting services.

The deal is expected to close late in the first quarter of 2011.

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