Digital Realty concludes Teraco acquisition
US-based firm Digital Reality’s move to acquire a majority stake in Teraco Data Environments has been “successfully” completed, it was announced yesterday.
As a result, the company will now be known as Teraco: A Digital Realty Company.
Based in Johannesburg and established in 2008, Teraco is Africa’s largest data centre services provider.
In January, it was announced that Digital Realty, one of the largest global providers of cloud and carrier-neutral data centre, colocation and interconnection solutions, had entered into a definitive agreement to acquire a majority stake in Teraco from a consortium of investors, including Berkshire Partners and Permira.
It was further stated that Digital Realty would own approximately 55% of the total equity interests in Teraco, while the remaining 45% would be held by a consortium of existing shareholders, including management, Berkshire Partners, Permira, Van Rooyen Group, Columbia Capital, Stepstone Ventures and the Teraco Connect Trust.
Furthermore, the Teraco management team would remain in place and maintain day-to-day responsibility for operations in the country.
According to a statement, Teraco’s acquisition adds South Africa to Digital Realty’s three markets on the continent, including Kenya, Mozambique and Nigeria.
In addition, clients will now have access to a choice of strategic connectivity and interconnection platforms that serve the African market, it states.
“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 Teraco CEO Jan Hnizdo.
“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.”
Digital Realty CEO A William Stein adds: “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.
“Today’s [Monday] 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.”