Verizon eyes small software acquisitions
NEW YORK (Reuters) - Verizon Communications Inc (VZ.N) may seek acquisitions of small software companies worth less than $100 million to complement its recent Terremark deal, the company's chief financial officer said.
Verizon spent about $1.4 billion on data center operator Terremark last month to expand its reach in business services. It nay follow with more acquisitions to boost offerings in software-as-a-service, Web-based software it would host at a remote data center, CFO Fran Shammo told the Reuters Global Technology Summit.
"I do think there are probably a number of smaller, strategic-type things that we will add to the Terremark acquisition from a software-as-a-service perspective," Shammo said. Areas of interest include specialist software for fleet management or for managing a company's energy efficiency.
"There are a lot of niche software companies out there who are developing all kinds of applications that can be used by small business, medium business and enterprise customers," said Shammo. But he noted that these deals would be smaller than the Terremark purchase.
"Normally these software companies are small. These are (worth) tens of millions of dollars, not hundreds of millions of dollars," he said.
(Reporting by Sinead Carew, editing by Matthew Lewis)