Digital Realty has today announced the acquisition of 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. It will now be known as Teraco: A Digital Realty Company.
The acquisition of Teraco adds South Africa to Digital Realty’s three existing markets on the continent, including Kenya, Mozambique, and Nigeria. The strategic 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, our customers have a range of strategic connectivity hubs from which to serve all corners of the African market.
“Teraco has made significant progress in achieving our strategic objectives, including improving the connectivity and accessibility of our data centres, in supporting the rapid digital transformation in the region,” says Jan Hnizdo, Chief Executive Officer, Teraco. “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.”
“We are very excited to complete this transformative transaction that positions Digital Realty as the premier data centre and connectivity provider on the high-growth African continent,” says A. William Stein, Chief Executive Officer, Digital Realty. “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.”
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.