The African digital ecosystem records another acquisition as Digital Realty buys out Teraco Data Environment (TDE) as the Digital Realty acquires the majority of TDE’s stake. Digital Realty reportedly spent a hefty $3.5bn to acquire TDE which also gave Digital Realty a decisive mantle to stair TDE’s operation.
Digital Realty announced the acquisition of the South African data center and rebranded its subsidiary to be christened Teraco. Digital Realty shows off complete ownership while the subsidiary serves exact data analytics operations under Digital Realty’s distribution network.
Digital Realty CEO, William Stein revealed his company is keen on expanding across the African market having acquired Teraco to penetrate the South African digital market.
Digital Realty currently administration sells technology-inclined services in significant commercial regions in Africa such as Nigeria, Kenya, Mozambique, and South Africa. Digital Realty and Teraco practice similar cloud and dynamo data center operation that presents both parties’ technology services integration. The Teraco acquisition by its parent company will yield long-term profits that attracted investors such as Berkshire Partners and Permira offering seeds to mark up the billions of dollars Teraco its parent company.
Aside from dynamo data center operations in specific African regions, Digital Realty specializes in servicing the global market with cloud as a custom service, and Collocation & Interconnection data solutions. Teraco will introduce the south African Market to experience Digital Realty’s special offers to tackle technology-related solutions, in line with Teraco CEO, Jan Hnizdo’s comment about his company’s development.
“Teraco has made significant progress in achieving our strategic objectives, including improving the connectivity and accessibility of our data centers, in supporting the rapid digital transformation in the region. Africa is poised to remain a high-growth, high-demand area for data center solutions. Our combined, diversified platform will further enable us to support our customers in the Pan-Africa region and worldwide.”
Stein commended Teraco’s CEO’s comment that revealed the reality of Digital Realty’s commitment enthused to innovate the African digital sector driving significant technology inclusion across Africa’s finest geographical space. Digital Realty is recognized as a significant data center in south Africa competing with the likes Liquid’s Data Centre, Microsoft Data Centre, etc.
“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 investing in Africa as we capitalize on the tremendous opportunity in the region.”