Digital Realty has acquired Teraco from a consortium of investors, including Berkshire Partners and Permira, that values Teraco at approximately $3.5 billion.
Teraco is a leading carrier-neutral data center and interconnection services provider in South Africa. After the acquisition, it will be known as Teraco: A Digital Realty Company.
The acquisition also adds South Africa to Digital Realty’s three existing markets on the continent, including Kenya, Mozambique, and Nigeria. The importance of these four markets has been enhanced by the recent and ongoing implementation of new subsea cable networks encircling Africa.
Combined with Digital Realty’s highly connected facilities in Marseille, the company’s customers will have a range of strategic connectivity hubs from which to serve all corners of the African market.
Teraco’s CEO Jan Hnizdo has said the company has made significant progress in achieving its strategic objectives including improving the connectivity and accessibility of its data centres in the region.
“Africa is poised to remain a high growth, high-demand area for data centre solutions. Our combined, diversified platform will further enable us to support our customers in the pan-Africa region and worldwide,” Jan said.
On his part, Digital Realty’s CEO, William Stein expressed his excitement after completing the acquisition that positions Digital Realty as the premier data centre and connectivity provider on the high-growth African continent.
“Today’s milestone gives us significant regional scale and access to a premier, high-quality portfolio in Africa’s largest market, enhancing our ability to serve growing customer demand for connectivity in the region. We’re thrilled to strengthen our global platform and deepen our commitment to investing in Africa as we capitalise on the tremendous opportunity in the region,” he said.
As South Africa’s largest and most densely interconnected data centre platform, Teraco says it supports the rapid growth of the continent’s Internet community through its expanding portfolio of data centres. Teraco’s experienced management team, growing multi-national client base, quality infrastructure, and ownership of NAPAfrica, the continent’s largest Internet Exchange Point, are key differentiators that position the company for sustainable growth.