Monday , November 30 2020

Berkshire Partners acquires majority stake in top African data center company



According to Bloomberg, Berkshire Partners, a major shareholder in Teraco, the largest data center provider in South Africa, is a private equity firm with many transactions in the data center services market.

In a statement, Teraco said Permira, a private equity firm based in London, which backed the sale of Teraco in 2015, will remain "an important investor." According to a Bloomberg report, the company could generate sales of at least $ 600 million to $ 100 million. The financial details of the Berkshire transaction were not disclosed.

Teraco seeks to capture growth opportunities in sub-Saharan Africa by doubling the capacity of new investors to existing data centers. As in other parts of the world, companies in the region are creating demand for data center services through digital conversion, said a partner in Permira, Migail Zekkos. Zekkos also mentioned the cloud outreach and early-stage outsourcing market for believing that there is a solid growth opportunity for Teraco.

"Teraco has an excellent position to take advantage of the rapid growth of the data center infrastructure market in sub-Saharan Africa, given the highly interconnected ecosystem, well-designed facilities and the ability to provide multiple deployments," said Larry Hamelsky, Berkshire, The managing director said in a statement.

The total power capacity of Teraco's four data centers (two in Johannesburg, one in Cape Town and one in Durban) is 30 MW. Jan Hnizdo said his goal is to reach 60 MW over the next few years. According to the website, the company plans to expand its Cape Town facility and build a new facility in Gauteng.

Berkshire's previous investment in the data center industry includes acquisitions from GI Partners in 2011 with Abry Partners of Tello, a US colloquium and interconnecting heavyweights. They have since sold Telx to Digital Realty Trust.

The recent contract with Berkshire is an investment in Edge Computing Venture IO last year. The Vapor 's Series C funding round, led by Berkshire, helped venture businesses acquire a state – of – the – art data center co – location business that began with the US Cell Tower giant Crown Castle.


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