Digital Realty, an American global provider of cloud and carrier-neutral data centres, announced the successful completion of an agreement to acquire a majority interest in Teraco, a carrier-neutral data centre and interconnection services provider in South Africa.
Digital Realty acquired the stake from a consortium of investors, including Berkshire Partners and Permira, in a transaction valuing Teraco at approximately $3.5 billion.
The acquisition adds South Africa to Digital Realty’s 3 existing markets on the continent, including Kenya, Mozambique, and Nigeria.
A. William Stein, chief executive officer at Digital Realty, says that the acquisition of Teraco gives the company significant regional scale and access to a premier, high-quality portfolio in Africa’s largest market which will enhance its ability to serve growing customer demand for connectivity in the region.