Verizon will acquire Terremark, a company that provides cloud services and datacentre hosting, in a $1.4bn deal.
The $1.4bn (£882m) price tag for Terremark works out to be $19 a share in cash. Terremark closed at $14.05 on Thursday.
Verizon said it will accelerate its "everything-as-a-service cloud strategy" and bolster its cloud portfolio. As a bonus, Verizon will get access to Terremark's government customer base.
For more on this ZDNet UK-selected story, see Verizon steps up its cloud game, buys Terremark for $1.4 billion on ZDNet.com.
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