African provider of colocation datacentre infrastructure Teraco Data Environments announced that Berkshire Partners LLC, a Boston-based investment firm, has entered into a definitive agreement to acquire a majority stake in the company. The Permira funds, an existing shareholder, will remain a significant investor.

Based in Johannesburg and established in 2008, Teraco offers vendor-neutral colocation and other related services in secure and resilient datacentres.

According to a statement issued by Teraco, the Permira funds initially backed a Teraco management buyout in December 2014 and in that time the business has multiplied its capacity more than six times.

The company operates five high-quality facilities with 30MW of critical power load serving more than 450 clients, including global internet companies, across five core ecosystems – telecoms, managed service providers, content, enterprise and financial services.

Teraco asserts that Africa's datacentre market is poised for continued strong growth with increasing demand for global applications, content, and the accelerating adoption of cloud services. The company aims double its installed critical power load from 30MW to 60MW.

Jan Hnizdo, Managing Director of Teraco, said, "Berkshire Partners is a like-minded and committed long-term partner that shares our vision for the future: to continue to invest in world-class data centre facilities, allowing us to support the digital interconnected enterprise, and meeting the high standards of service that are expected from us. Over the next few years, we aim to double our installed critical power load from 30MW to 60MW and we look forward to working closely with Berkshire Partners on this ambitious growth journey."

Michail Zekkos, Partner at Permira, added, "The past four years have been a transformational journey for Teraco, and we are very pleased to have played a role in growing the business, expanding its ecosystem, and delivering such strong results. Continued secular demand driven by Sub-Saharan Africa's digital transformation, the early stages of outsourcing, and cloud penetration means that the future looks very positive for Teraco, and we look forward to supporting the team."

Lex Van Wyk, Chief Executive Officer of Teraco said: "Berkshire Partners has prior experience investing in datacentres and appreciates the business that we have built. We are delighted to welcome them as our new majority shareholder. In addition, with the Permira funds staying on as a shareholder, there remains continuity in the shareholder base. It is business as usual for the employees and management team of Teraco, and more importantly, for our clients."

The transaction is subject to regulatory approval and the customary closing conditions and is expected to close in the first quarter of 2019.

In July 2018 Teraco announced a R1-billion investment in an infrastructure build project channelled into its Isando Campus in Johannesburg in two phases.