Share

Berkshire Partners buys stake in Africa's biggest data centre

Berkshire Partners acquired a stake in Teraco Data Environments, becoming the biggest shareholder in Africa’s largest data-centre to capitalise on growing demand for internet and cloud-based services on the continent.

The Boston-based private-equity firm is sweeping in on Johannesburg-based Teraco as technology plays a more integral part in the life of consumers and businesses. Teraco was expected to fetch between $600m and $1bn, including debt, people familiar with the matter said in November.

"Berkshire Partners is a committed long-term partner that will assist us with future growth plans and additional investment," Teraco Managing Director Jan Hnizdo in an email. The value of the transaction wasn’t disclosed.

The purchase comes after London-based Permira, which backed a management buyout of the company in 2015, sought a buyer for part of its stake in the company, which also operates data centres in Cape Town and Durban. Permira will stay on as a shareholder in Teraco, Michail Zekkos, a partner in the firm, said.

The business plans to double its installed power load capacity to 60 megawatts in the next four to five years, Teraco’s Hnizdo said. Clients include Amazon Web Services and China Telecom Global, its website shows. The closely-held company will have spent R4.5bn on building data-services centres in South Africa when the current investment cycle ends in 2019.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.97
-0.3%
Rand - Pound
23.97
-0.3%
Rand - Euro
20.48
-0.1%
Rand - Aus dollar
12.36
-0.1%
Rand - Yen
0.13
-0.4%
Platinum
911.60
+1.6%
Palladium
1,012.97
+1.1%
Gold
2,214.54
+0.9%
Silver
24.90
+1.0%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders