Digital Realty Completes Acquisition of Teraco
According to Teraco Data Environments, the previously announced deal by Digital Realty to buy a majority stake in the business from a group of investors that included Berkshire Partners and Permira has been successfully completed.
Digital Realty is the largest global provider of cloud and carrier-neutral data centre, colocation and interconnection solutions. Teraco will be rebranded as Teraco: A Digital Realty Company once the deal is finalized.
Teraco is a top carrier-neutral colocation provider in the continent and also the first supplier of highly resilient, vendor-neutral data environments in sub-Saharan Africa. The company contributes significantly to the African Internet’s backbone and is crucial to the digital transformation strategy of contemporary businesses because to its first-rate data center infrastructure and network-dense ecosystem.
Teraco is a joint venture between a group of private equity investors, including Berkshire Partners LLC and Permira, and Digital Realty (NYSE: DLR), which provides customers with a global data center platform designed to enable businesses to scale within a highly connected data community across 300+ data centers in 50+ metros and 27 countries on six continents.
Recall that Digital Realty had in January this year announced it entered into a definitive agreement to acquire a majority stake in Teraco in a transaction valuing Teraco at approximately $3.5 billion.
Digital Realty Acquires 55% Controlling Stake in S.A Teraco Data Environments
Teraco supports the booming internet community on the continent with its expanding array of data centers as South Africa’s biggest and most densely linked data center platform. Key differentiators that position Teraco for sustainable growth include its seasoned management team, expanding multi-national clientele, top-notch infrastructure, and ownership of NAPAfrica, the continent’s largest Internet Exchange Point.
What the Teraco Takeover Means
By offering the complete range of data center, colocation, and connectivity solutions, Digital Realty connects businesses and data. The company’s global data center platform, PlatformDIGITAL®, offers companies a safe data “meeting place” and a tried-and-true Pervasive Datacenter Architecture (PDxTM) solution approach. This fosters innovation and successful addressing of Data Gravity issues. With 300+ facilities spread over 50+ metro areas in 27 countries on six continents, the company provides access to the connected communities that are important to its clients.
William A. Stein, Chief Executive Officer of Digital Realty, expressed delight at the ‘revolutionary acquisition.’ He noted that the achievement increases the company’s capacity to meet the region’s expanding consumer demand.
“We are very excited to complete this transformative transaction that positions Digital Realty as the premier data center and connectivity provider on the high-growth African continent.
“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. We’re thrilled to strengthen our global platform and deepen our commitment to investment in Africa,” said Stein.
With the addition of South Africa, Digital Realty will now have four markets on the continent, in addition to Kenya, Mozambique, and Nigeria. The recent and continuous deployment of new undersea cable networks around Africa has increased these four markets’ strategic significance. Our customers have access to a number of important networking nodes when combined with Digital Realty’s highly linked Marseille facilities.