Permira Buys 100% of South Africa’s Data firm Teraco Data Environments
London-based Private Equity firm Permira, has acquired 100% equity in Teraco, a provider of carrier neutral datacentre services in Sub-Saharan Africa. Terms of the deal were not disclosed.
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.”
Teraco operates three high quality 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 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.
Michail Zekkos, Principal at Permira, added: “As the leading carrier neutral datacentre provider with 5 growing customer ecosystems, Teraco is ideally positioned to continue supporting the critical IT infrastructure of its clients and their connectivity needs. We look forward to partnering with Lex Van Wyk and his experienced management team to support the next phase of growth of this high-quality, uniquely connected datacentre business.”
This is Permira’s first investment in Africa and an example of our technology strategy of backing strong market leaders in fast growing markets.
The transaction is subject to regulatory approval and customary closing conditions, and is expected to complete in Q1 2015.
Source: Techmoran 4 December 2014