Teraco seals R31.69-billion deal
Teraco is officially Teraco: A Digital Realty Company, the South African data centre powerhouse announced on Monday.
New York-based Digital Realty has completed its acquisition of approximately 55% of Teraco.
When the companies announced the deal in January, Digital Realty said the acquisition values Teraco at around $3.5 billion (R57.6 billion).
The Competition Commission approved the transaction without conditions on 19 April.
Digital Realty acquired the stake from a consortium of investors, including Berkshire Partners and Permira.
“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,” said Teraco CEO Jan Hnizdo.
“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,” said Digital Realty chief executive A. William Stein.
“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.”
Teraco lays claim to being South Africa’s largest and most densely interconnected data centre platform.
According to Teraco, one of its key differentiators is its ownership of NAPAfrica, Africa’s largest Internet Exchange Point.
The acquisition of Teraco adds South Africa to the three markets Digital Realty already operates in on the continent — 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,” the companies said.
“Combined with Digital Realty’s highly connected facilities, clients now have access to a choice of strategic connectivity and interconnection platforms that serve all corners of the African market.”
Now read: Growth of data centres in South Africa
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