Digital Realty has agreed to acquire a majority stake in Teraco, an African carrier-neutral colocation provider, from a consortium of investors that includes Berkshire Partners and Permira. The transaction values Teraco at $3.5 billion.
Teraco is the largest and most densely interconnected data center platform in Africa, with seven state-of-the-art facilities strategically located in the key South African metros of Johannesburg, Cape Town and Durban. The company serves more than 600 customers, including more than 275 connectivity providers, more than 25 cloud and content platforms, and 300 enterprises.
In addition to direct access to seven existing subsea cable systems, several consortiums of major cloud and content platforms are currently building three additional subsea cables, which are expected to land over the next three years.
“This highly strategic transaction immediately cements Digital Realty as the leading colocation and interconnection provider in A