South Africa’s largest data centre operator, Teraco Data Environments, will henceforth be known as Teraco: A Digital Realty Company. This is after US-based Digital Realty on Monday completed its blockbuster acquisition of 55% of the company.
New York-listed Digital Realty completed the deal after the Competition Commission in April approved the transaction – albeit on the condition that the parties agreed that the merged entity maintain its B-BBEE trust and introduce an employee share ownership plan.
TechCentral first reported about the deal, which attached a R55.5-billion valuation to Teraco, back in January. The transaction means Teraco is valued at more than twice as much Telkom, even after MTN Group’s recent announcement that it was in talks South Africa’s incumbent fixed-line telecommunications operator.
Digital Realty describes itself as the largest global provider of cloud and carrier-neutral data centre, colocation and interconnection solutions. The company is buying the majority stake in Teraco from a consortium of investors, including Berkshire Partners and Permira.
“Teraco’s experienced management team, growing multinational client base, quality infrastructure and ownership of NAPAfrica, the continent’s largest Internet exchange point, are key differentiators that position the company for sustainable growth,” Digital Realty said in a statement on Monday.
Teraco is one of the biggest success stories in post-apartheid South African business.
“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,” Digital Realty said in its statement. – © 2022 NewsCentral Media