Digital Realty to Acquire Teraco in $3.5 Billion Deal

Source Intelligence

KEY DETAILS

After closing, Digital Realty will own approximately 55% of the total equity interests in Teraco, while the remaining 45% will be held by a consortium of existing investors, including management, Berkshire Partners LLC, Permira, van Rooyen Group, Columbia Capital, Stepstone Ventures and the Teraco Connect Trust.

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Deal Size

in a transaction valuing Teraco at approximately $3.5 billion

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Capacity

The Teraco platform contains 187 megawatts of total planned capacity, including seven in-service facilities totaling 75 megawatts and one development project totaling 19 megawatts currently under construction.

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Location

Teraco is the largest and most densely interconnected data center platform in Africa , with seven state-of-the-art facilities strategically located in the key South African metros of Johannesburg , Cape Town and Durban .

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Announcement

Jan. 3, 2022

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Expected Close

The transaction is expected to close in the first half of 2022 and is subject to customary closing conditions.

PARTIES MENTIONED IN SOURCE

D

Digital Realty buyer

"Digital Realty (NYSE: DLR ), the largest global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, announced today it has entered into a definitive agreement to acquire a majority stake in Teraco"

T

Teraco seller

"Digital Realty (NYSE: DLR ), the largest global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, announced today it has entered into a definitive agreement to acquire a majority stake in Teraco"

B

Berkshire Partners investor

"from a consortium of investors, including Berkshire Partners and Permira"

P

Permira investor

"from a consortium of investors, including Berkshire Partners and Permira"

v

van Rooyen Group investor

"while the remaining 45% will be held by a consortium of existing investors, including management, Berkshire Partners LLC, Permira, van Rooyen Group, Columbia Capital, Stepstone Ventures and the Teraco Connect Trust."

C

Columbia Capital investor

"while the remaining 45% will be held by a consortium of existing investors, including management, Berkshire Partners LLC, Permira, van Rooyen Group, Columbia Capital, Stepstone Ventures and the Teraco Connect Trust."

S

Stepstone Ventures investor

"while the remaining 45% will be held by a consortium of existing investors, including management, Berkshire Partners LLC, Permira, van Rooyen Group, Columbia Capital, Stepstone Ventures and the Teraco Connect Trust."

T

Teraco Connect Trust investor

"while the remaining 45% will be held by a consortium of existing investors, including management, Berkshire Partners LLC, Permira, van Rooyen Group, Columbia Capital, Stepstone Ventures and the Teraco Connect Trust."

S

Solomon Partners advisor

"Solomon Partners is acting as financial advisor and Latham & Watkins LLP and Bowmans are acting as legal advisors to Digital Realty."

L

Latham & Watkins LLP advisor

"Solomon Partners is acting as financial advisor and Latham & Watkins LLP and Bowmans are acting as legal advisors to Digital Realty."

B

Bowmans advisor

"Solomon Partners is acting as financial advisor and Latham & Watkins LLP and Bowmans are acting as legal advisors to Digital Realty."

G

Goldman Sachs advisor

"Goldman Sachs is acting as financial advisor to Teraco and Weil, Gotshal & Manges LLP and ENSafrica are serving as legal advisors to Teraco."