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Teraco buyout on the cards

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 03 Dec 2014
Teraco CEO Lex van Wyk says the Permira funds' experience in global technology markets will help the company realise its growth goals.
Teraco CEO Lex van Wyk says the Permira funds' experience in global technology markets will help the company realise its growth goals.

Local data centre company Teraco Data Environments is being acquired with the backing of international private equity firm Permira.

The two entities today announced that a company backed by the Permira funds has agreed to acquire 100% of the equity in Teraco in partnership with management.

Established in 2008, when the South African telecoms market was deregulated, Teraco is one of the leading carrier-neutral data centre operators in Sub-Saharan Africa. The company operates three facilities, serving over 170 clients across five client hubs - telecoms, outsourcing, content, enterprise and financial.

The transaction is subject to regulatory approval and customary closing conditions, and is expected to be complete in the first quarter of 2015.

Should the deal be approved, Permira principal Michail Zekkos will upon closing join Teraco's board, while partner and co-head of the technology team at Permira, Richard Sanders, will serve as an observer to the board.

Teraco CEO Lex Van Wyk says the company is now a mature business "and the Permira funds' experience in investing in technology markets globally will help Teraco deliver its ambitious growth goals".

Teraco notes the data centre market in SA is growing rapidly, with only one-tenth of data centre facilities outsourced, compared to a third in the US and a quarter in Europe.

The Permira funds' investment will support the company's growth plans, including the strengthening of its sales and marketing platform and its expansion into Sub-Saharan Africa, says Teraco.

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