Teraco sold to private equity firm

Data centre provider Teraco has been bought up by London-based international private equity firm, Permira.

The group announced on Wednesday (3 December) that a company backed by Permira funds has acquired 100% of the equity in Teraco in partnership with Permira management.

The purchase price was not disclosed.

Teraco is the largest provider of carrier neutral datacentre services in Sub-Saharan Africa, offering colocation and related services in secure and reliable datacentre environments.

The company operates three facilities serving more than 170 clients, including many blue chip companies, across five key client hubs – telecoms, outsourcing, content, enterprise and financial.

Teraco’s datacentres are the most interconnected in Sub-Saharan Africa, with customers connecting directly with each other, as well as through the region’s largest and fastest growing IXP – ‘NAP Africa’, the group noted.

“In Teraco, the Permira funds are backing a leader in a market with strong fundamental growth drivers. The datacentre market is supported by the growth in the adoption of internet and smart devices in Africa as well as increased datacentre outsourcing,” Permira said in a statement.

“The market in South Africa is growing rapidly, with only one tenth of datacentre facilities outsourced compared with a third in the US and a quarter in Europe.”

“Teraco has built an important strategic position to capture the regional opportunity as a trusted and secure partner with reliable power sources. The Permira funds’ investment will support the company’s growth plans, including the strengthening of its sales and marketing platform and its expansion into Sub-Saharan Africa.”

According to Teraco CEO, Lex van Wyk, the financial backing of Permira will allow the company to deliver on its “ambitious growth goals”.

The transaction is subject to regulatory approval and customary closing conditions, and is expected to complete in Q1 2015.

Upon closing, Permira’s Michail Zekkos will join Teraco’s board while Richard Sanders will serve as an observer to the board.

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Teraco sold to private equity firm