Digital Realty to Acquire a Majority Stake in Teraco Valued at $3.5B

Digital Realty recently entered into a definitive agreement to acquire a majority stake in Teraco, Africa’s leading carrier-neutral colocation provider, from a consortium of investors including Berkshire Partners and Permira, in a transaction valuing Teraco at approximately $3.5 billion. This transaction establishes Digital Realty as the leading colocation and interconnection provider on the African continent.

Teraco is the largest and most densely interconnected data center platform in Africa, with seven facilities strategically located in the key South African metros of Johannesburg, Cape Town and Durban. Teraco serves more than 600 customers including more than 275 connectivity providers, more than 25 cloud and content platforms, and approximately 300 enterprises.

Teraco facilitates approximately 22,000 interconnections between customers and its Isando campus in Johannesburg is one of the most densely interconnected sites in the world, with more than 13,000 cross-connects. Teraco also hosts seven on-ramps to leading global cloud service providers in Johannesburg and Cape Town, and currently provides direct access to seven subsea cables in Durban on the east coast and Cape Town on the southwest coast.