The company, which is Africa’s largest data centre operator, could allegedly be sold for $600 million to $1 billion, according to Bloomberg reports. The report adds that the company could attract interest from private equity and industry-focused investors £including General Atlantic and Digital Bridge Holdings, as well as other data centre owners”.
Teraco has Tier III+ data centres with facilities for multinational companies to collocate their services and according to Bloomberg sources “no decisions have been made and the London-based private equity firm may elect to keep Teraco”.
London-based Permira announced in December 2014 that it had acquired 100% equity in Teraco as part of an undisclosed deal. At the time, Lex Van Wyk, CEO, Teraco, said: “The management team is excited to welcome the Permira funds as a shareholder and we are optimistic about the opportunities provided by this new partnership moving forward. Timing is key in these situations, Teraco is now a mature business with a proven strategy, and the Permira funds’ experience in investing in technology markets globally will help Teraco deliver its ambitious growth goals.”
According to Permira’s website, the carrier and vendor-neutral data centre has “quadrupled in size through organic growth”, see the video below to see how.
Teraco’s clients include Amazon Web Service and China Telecom Global, the latter of which deployed network nodes in Teraco’s facilities in Cape Town, Durban and Johannesburg from 2012 and recently established an interconnection network and telecommunications hub to support growing traffic demands at Teraco Data Environments.
