Berkshire Partners of Boston, a private investor with a number of data center market services, acquired a majority stake in Teraco, which, according to Bloomberg, is the largest data center provider in South Africa.
Permira, a London-based private investment company that has supported Teraco in 2015, will remain a "significant investor," Teraco said. Permira has been shopping around Teraco at least since the beginning of last year, according to a Bloomberg report, according to which the sale could reach between $ 600 and $ 1 billion. The financial details of the deal with Berkshire have not been revealed.
With the new investor on board, Teraco seeks to double the existing capacity of data centers as it seeks to acquire a growing opportunity in sub-Saharan Africa. As in other locations around the world, business in the region is undergoing digital transformation, stimulating demand for data center services, according to a statement by Michail Zekkos, a partner at Permira. Zekkos also cites cloud penetration and the outsourcing market at an early stage as a reason to believe Teraco has strong growth opportunities.
"We believe that Teraco is extremely well positioned to take advantage of the rapid growth of the sub-Saharan information infrastructure infrastructure market, given its highly interconnected ecosystems, well designed facilities and the ability to offer a wide range of deployments," said Berkshire Director, says a statement.
Total power in the Teraco data centers (two in Johannesburg, one in Cape Town and one in Durban) is 30MW, the company said. Jan Hnizdo, Managing Director, said the company's goal is to reach 60MW over the next few years. On the website, the company said it plans to expand the facility in Cape Town and build a new one in Gautheng.
Berkshire's previous investments in the data center industry include acquisition of Abry Partners by the GI Partners in 2011 for collocation and Telx intergraph heavyweight. Since then, they have sold Telx to Digital Realty Trust.
Berkshire's latest deal is her investment in launching Vapor IO at the end of last year's calculations. Berkshire-led V-series financing of Vapor helped the start-up fund to acquire the end-of-data colocation business, which began with the US giant Crown Castle.