Digital Realty completes $3.5bn acquisition of Teraco
Digital Realty has completed its previously announced acquisition of a majority interest in Teraco, a data centre provider in South Africa.
Digital Realty has acquired Teraco from a consortium of investors, including Berkshire Partners and Permira, that values Teraco at approximately $3.5 billion. The company will now be known as Teraco: A Digital Realty Company.
"We are very excited to complete this transformative transaction that positions Digital Realty as the premier data centre and connectivity provider on the high-growth African continent," says A. William Stein, chief executive officer, Digital Realty.
"Today's milestone gives us significant regional scale and access to a premier, high-quality portfolio in Africa's largest market, enhancing our ability to serve growing customer demand for connectivity in the region. We're thrilled to strengthen our global platform and deepen our commitment to investment in Africa, as we capitalise on the tremendous opportunity in the region."
Teraco now adds South Africa to Digital Realty's three existing markets in Africa including Kenya, Mozambique, and Nigeria. With a number of new subsea cable networks encircling the continent, combined with Digital Realty's facilities in Marseille, will give customers a range of connectivity hubs from which to serve the African market.
"Teraco has made significant progress in achieving our strategic objectives, including improving the connectivity and accessibility of our data centres, in supporting the rapid digital transformation in the region," said Jan Hnizdo, chief executive officer, Teraco.
"Africa is poised to remain a high growth, high-demand area for data centre solutions and our combined, diversified platform will further enable us to support our customers in the pan-Africa region and around the world."
In related news. Digital Realty published the details of its second quarter 2022 results. Revenues for the period reached $1.1 billion, a 1% increase from the previous quarter and a 4% increase year-on-year (YoY).
Net incomes from period totalled $63.9 million, with net income to common stockholders of $53.2 million equivalent to $0.19 per diluted share, compared to $0.22 per diluted share in the previous quarter and $0.45 per diluted share in the same quarter last year.
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) of $611 million, a 1% increase from the previous quarter and a 1% increase YoY.