Local data centre provider Teraco today announced Berkshire Partners, a Boston-based investment firm, has entered into a definitive agreement to acquire a majority stake in the company.
In a statement issued this afternoon, Teraco says the Permira funds, an existing shareholder, will remain a significant investor.
According to the company, the Permira funds initially backed a Teraco management buyout in December 2014 and in that time the business has multiplied its capacity more than six times.
The data centre market in Africa is poised for continued strong growth with increasing demand for global applications, content and the accelerating adoption of cloud services, highlights the Teraco statement.
Teraco MD Jan Hnizdo says: "Berkshire Partners is a like-minded and committed long-term partner that shares our vision for the future to continue to invest in world-class data centre facilities, allowing us to support the digital interconnected enterprise, and meeting the high standards of service that are expected from us. Over the next few years, we aim to double our installed critical power load from 30MW to 60MW and we look forward to working closely with Berkshire Partners on this ambitious growth journey."
Larry Hamelsky, MD of Berkshire Partners, adds: "We believe Teraco is exceptionally well-positioned to capitalise on the fast growth of the Sub-Saharan data centre infrastructure market given its highly interconnected ecosystems, well-designed facilities, and ability to offer a wide array of deployments. We are thrilled to be partnering with Teraco's talented management team to support the company's continued success."
According to the statement, the transaction is subject to regulatory approval and the customary closing conditions, and is expected to close in the first quarter of 2019.
"Berkshire Partners has prior experience investing in data centres and appreciates the business that we have built. We are delighted to welcome them as our new majority shareholder. In addition, with the Permira funds staying on as a shareholder, there remains continuity in the shareholder base. It is business as usual for the employees and management team of Teraco, and more importantly, for our clients," notes Teraco CEO Lex van Wyk.
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