Africa's largest data-centre operator said to seek buyers for SA firm | Fin24
  • Growing Demand

    Automaker Ford says it will be adding 1 200 new jobs and a third shift at its Pretoria assembly plant.

  • 'Deeply Upsetting'

    Dan Matjila, the former CEO of the Public Investment Corporation, has denied receiving a R5m bribe.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.


Africa's largest data-centre operator said to seek buyers for SA firm

Nov 10 2018 09:28
Gillian Tan, Kiel Porter and Loni Prinsloo, Bloomberg

Permira is working with an adviser to find a buyer for its data centre company Teraco Data Environments, people with knowledge of the matter said.

The Johannesburg-based company, Africa’s largest data-centre operator, could fetch anywhere from $600m to $1bn including debt in a sale, said three of the people, who asked not to be identified because the information is private.

No decisions have been made and the London-based private equity firm may elect to keep Teraco, the people said.

Representatives for Permira and Teraco declined to comment.

The company could attract interest from private equity and industry-focused investors including General Atlantic and Digital Bridge Holdings, as well as other data centre owners, the people said. General Atlantic and Digital Bridge declined to comment.

In addition to Johannesburg, Teraco also operates data centres in Cape Town and Durban. Permira backed a management buyout of the company in 2015, according to the firm’s website. Teraco’s clients include China Telecom Global and Amazon Web Services, its website shows.

Institutional investors have been drawn to data centres, partly because technology is increasingly more integral to consumers and businesses. Demand for associated data storage and services is seen as protecting the industry from a potential cyclical downturn.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

data  |  ict  |  tech


Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...