South African data centre powerhouse Teraco Data Environments, is now officially Teraco: A Digital Reality Company. The name change comes after New York based firm Digital Reality acquired a majority stake in Teraco.
According to reports, Digital Reality’s acquisition is said to be in the region of $3.5 billion. The company acquired a majority interest in Teraco from a consortium of investors, including Berkshire Partners and Permira.
Digital Reality is a global provider of cloud and carrier-neutral data centre, colocation and interconnection solutions.
The acquisition of Teraco adds South Africa to Digital Realty’s three markets on the continent, including 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.
“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 Jan Hnizdo, Chief Executive Officer, Teraco. “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.”
“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,” says A. William Stein, Chief Executive Officer, Digital Realty. “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 investing in Africa as we capitalise on the tremendous opportunity in the region.”