Verizon Communications History Page 5 of 12
Verizon Enterprise Solutions offers an array of advanced information and communication technology
services, including global Internet Protocol (IP) network, cloud, and IT (information technology)
solutions, and business communications, IoT (Internet of Things), data, security and mobility services.
Acquisitions
Over the past decade, Verizon has made a number of acquisitions to build its portfolio of next-
generation communications services.
On February 14, 2005, Verizon announced an agreement to acquire MCI Communications Corp. in order
to enhance its ability to deliver the benefits of converged communications, information and
entertainment across the country and around the world. Qwest Communications later announced its
own bid for MCI, but in May 2005 the MCI Board endorsed an amended bid by Verizon. The merger
closed on January 6, 2006, in a transaction valued at approximately $8.5 billion.
In May 2007, Verizon announced an agreement to acquire Cybertrust, a privately held provider of global
information security services.
In January 2011, Verizon announced an agreement to acquire Terremark Worldwide Inc., a global
provider of managed IT infrastructure and cloud services, for a total equity value of $1.4 billion. The
transaction closed in April 2011, and accelerated Verizon’s strategy to deliver a portfolio of highly
secure, scalable on-demand solutions to business and government customers globally – building on the
global network capabilities that Verizon gained through its acquisition of MCI.
To complement the Terremark acquisition, Verizon acquired CloudSwitch, an innovative provider of
cloud software technology, in August 2011.
In July 2012, Verizon acquired Hughes Telematics. The transaction expanded Verizon’s capabilities in the
automotive and fleet telematics marketplace and helped accelerate growth in emerging IoT
applications. Verizon’s strategy to simplify the IoT and accelerate its adoption includes the launch in
2015 of ThingSpace, an IoT platform designed to assist developers create, test, manage and market their
IoT-based solutions aimed at major vertical markets, such as energy, health care and connected cities.
In November 2013, Verizon acquired the assets and operations of upLynk, a leading technology and
television cloud company. In December 2013, Verizon announced an agreement to acquire EdgeCast, an
industry leader in content delivery networks. In January 2014, Verizon and Intel Corp. announced an
agreement for Verizon to purchase the assets of Intel Media, a business division dedicated to the
development of cloud TV products and services.
Those three businesses were integrated into the Verizon Digital Media Services (DMS) organization,
which uses world-class technology to help companies prepare, deliver and display digital media content
including video, web pages, applications, mobile ads and live events on any screen.
In June 2015, taking another significant step in building digital and video platforms to drive future
growth, Verizon purchased AOL Inc. for $50 per share – an estimated total value of approximately $4.4
billion. Verizon’s acquisition further drives its LTE wireless video and OTT (over-the-top video) strategy.