IT infrastructure service provider Terremark - a company whose roster of clients includes many US federal government agencies - acquired a remote back-up and data restoration service provider for $11.5 million in cash. Terremark announced the deal Thursday.

DS3 DataVaulting provides local and remote business continuity services, along with back-up archive tiers and data discovery capabilities.

"Acquiring DS3 enhances our overall data storage offering and helps us accelerate the development of our solutions in the area of managed storage, which is a key growth opportunity driven by the escalating data demands created by new technologies and increasingly stringent regulatory compliance," Terremark Chief Strategy Officer Marvin Wheeler said in a statement.

"Combining DS3's innovative backup and restore offerings with our existing suite of services and top-tier, highly connected facilities significantly adds to the value that our data storage solutions provide to enterprises and federal government agencies."

Miami, Fla.-based Terremark will relocate DS3 infrastructure to its own data centers - a move the buyer hopes will allow it to realize consolidation-enabled "cost synergies" and rid it of the necessity to outsource some of its data storage services.

The announcement came three days after Terremark reported that its cloud-computing business quadrupled during the quarter ending Sept. 30, compared to the three-month period that preceded it. The company reported a 17-percent year-over-year revenue increase and progress in expanding its data center footprint in the US, Brazil and Turkey.

DS3 is based in Fairfax, Va.