Verizon Communications Inc., the second-largest U.S. phone carrier, has agreed to buy cloud-provider Terremark Worldwide Inc. for $1.4 billion as it expands services that allow corporate customers store data and programs offsite.

The cash deal, which values Terremark at $19 a share, represents a 35 percent premium over the company’s closing share price. Verizon plans to complete its offer later this quarter, the New York-based company said in a statement.

Verizon is expanding its business that allows companies to store their data in the so-called cloud, or server computers maintained by other companies that provide less-expensive access to electronic records and software. The acquisition, which brings on corporate and government customers, is part of a broader strategy to make customers’ information, including music, personal data and corporate data, available across devices and locations, Verizon said. 

(Bloomberg)