Teraco Data Environments announced on Thursday that Berkshire Partners LLC has entered into a definitive agreement to acquire a majority stake in the company. The transaction is subject to regulatory approval and the customary closing conditions, and is expected to close in the first quarter of 2019. The Permira funds, an existing shareholder, will remain a significant investor. According to Bloomsberg, Berkshire Partners becomes the biggest shareholder in Teraco Data Environments. Teraco is the leading provider of carrier neutral colocation datacentres in Africa, hosting NAPAfrica and connecting with various subsea cables.

Berkshire Partners is a Boston-based private-equity firm with a track record of success spanning over 30 years. Berkshire has raised nine private equity funds with more than $16 billion in aggregate capital commitments and manages a marketable securities fund, Stockbridge Investors, with over $2.5 billion of capital. is sweeping in on Johannesburg-based Teraco as technology plays a more integral part in the life of consumers and businesses.
Permira Holdings LLP is based in London-based, Permira is a global investment firm that finds and backs successful businesses with ambition. The Permira funds, with a total committed capital of approximately €33 billion, make long-term investments, including majority control investments as well as strategic minority investments. Permira funds backed a management buyout of Teraco in 2015. Permira will stay on as a shareholder in Teraco.
Teraco is the largest provider of datacentre services in Africa, based in Johannesburg and established in 2008. Teraco currently operates five high-quality carrier neutral colocation data centres, one in Cape Town, one Durban and three in Johannesburg. Teraco plans to expand the Cape Town facility and build another in Gauteng. Teraco data center is now operating with an installed power load capacity of 30MW, to be doubled to 60 megawatts in the next four to five years.
The datacentre market in Africa is poised for continued strong growth with increasing demand for global applications, content, and the accelerating adoption of cloud services. Teraco has built a strategic position to capture this regional opportunity as a trusted and secure partner with resilient datacentre facilities built to international standards.
Teraco also operates the NAPAfrica Internet eXchange Point (IXP), offering prompt IP peering and cross connections for its 450 clients including Amazon Web Services (AWS), China Telecom Global, Baidu, Tecent, etc.
At Teraco data centers, clients can access to subsea cables including ACE, EASSy, WIOCC, SAT3, SAFE, Seacom, WACS, WIOCC, etc.
As a carrier neutral data center operator, clients at Teraco can choose backhual or backbone connectivite from Liquid Telecoms, Seacom, Telkom (Openserve), CMC Networks, WIOCC, Vodacom, MTN, Internet Solutions, etc.