The Permira Funds back management in buyout of Teraco, a provider of carrier neutral datacentre services
Teraco Data Environments, Sub-Saharan Africa’s leading provider of carrier neutral datacentre services, and Permira, the international private equity firm, today announced that a company backed by the Permira funds has agreed to acquire 100% of the equity in Teraco in partnership with management.
Established in 2008 upon deregulation of the South African telecoms market, Teraco is the largest provider of carrier neutral datacentre services in Sub-Saharan Africa. The company offers colocation and related services in highly secure and reliable datacentre environments. The company 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’.
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. 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.