Digital Realty acquires Teraco to create Africa’s leading colocation provider

A newly completed acquisition in the data centre market promises to create the leading colocation and interconnection provider in Africa, according to Digital Realty, a global provider of cloud-and carrier-neutral data centre, colocation and interconnection solutions.

Digital Realty has announced the successful completion of its agreement, announced in January, to acquire a majority interest in Teraco, a leading carrier-neutral data centre and interconnection services provider in South Africa, from a consortium of investors, including Berkshire Partners and Permira, in a transaction valuing Teraco at approximately $3.5 billion.

The acquisition of Teraco adds South Africa to Digital Realty’s three existing markets on the African continent: Kenya, Mozambique and Nigeria. The company points out that 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, it says its customers now have a range of strategic connectivity hubs from which to serve all corners of the African market.

As South Africa’s largest and most densely interconnected data centre platform, Teraco supports the rapid growth of the continent’s internet community through its expanding portfolio of data centres.

The partners in the deal say that Teraco’s experienced management team, growing multi-national customer base, quality infrastructure and ownership of NAPAfrica, the continent’s largest internet exchange point, are key differentiators that position the company for sustainable growth.

Following this acquisition, Teraco will be known as Teraco: A Digital Realty Company.