Terremark sells telecom hotel business
Reprinted from: InternetCoast
Released Thursday, January 17, 2001 at 9:50 pm
MIAMI–(BUSINESS WIRE)–Jan. 16, 2001– Terremark Worldwide, Inc. (AMEX:TWW – news), a global leader in providing Internet infrastructure and managed services, today announced that it will be deploying TerreNAP(sm) Data Centers globally and that it has entered into a binding contract to sell its telecom hotel business, Telecom Routing Exchange Developers, Inc. (T-Rex), to that company’s senior management. The transaction is the first step in Terremark’s plan to exit all lines of business not directly related to the Company’s core strategy, which includes the completion of its signature TerreNAP(sm) Data Center, the NAP of the Americas, and the roll out of similar centers in Latin America and Asia.
The NAP of the Americas, the fifth Tier-1 Network Access Point in the world, located in Miami, Florida, is owned and operated by Terremark and is scheduled to be live and operational by mid 2001. Terremark’s Interim NAP went live in December providing connectivity and managed services to carriers, ISPs and others 24 hours a day and 7 days a week.
The transaction involves the sale of all T-Rex assets to T-Rex founders and current CEO and President, Thomas M. Mulroy and Clifford J. Preminger. The only T-Rex assets being retained by Terremark are the interests in and involvement with the Technology Center of the Americas (TECOTA), home of the NAP of the Americas.
“The agreement between Terremark and T-Rex management is excellent for all parties involved. It is a major step in Terremark’s plan to exit from ancillary business activities and it allows them to focus all of their attention pursuing the business they founded, the development of high end, T-Rex brand telcom hotels,” said Manuel D. Medina, Chairman and CEO of Terremark. “Terremark’s management is convinced that the fastest and most effective method for building value for Terremark’s shareholders is the pursuit of our TerreNAP(sm) strategy. There is tremendous demand for these facilities in Latin America and Asia as the need for NAP connectivity and services more than doubles every year in these markets. By selling the telecom hotel business and some of our other non-core assets, we can devote all of our efforts and attention to the expansion of the TerreNAP(sm) business.”
Mr. Preminger, who is resigning from the Terremark Board of Directors as part of this transaction so that he could devote his full attention to the T-Rex business echoed Mr. Medina’s sentiments, “Tom and I remain two of Terremark’s biggest supporters. We view this agreement as a win-win situation for both companies and look forward to working with Terremark in the future as opportunities arise.”