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Data centre firm Teraco receives R400m funding boost

Johannesburg - African data centre operator and internet exchange point (IXP) Teraco has boosted its medium term funding facility to R400m as it embarks on an expansion drive.

This is after the data centre company secured the funding package from banking group Barclays Africa.

Teraco Data Environments - which has data centres in Johannesburg, Cape Town and Durban - was established in 2008 and serves more than 170 clients, who specialise in the likes of telecoms, outsourcing, content, enterprise and financial services.

Teraco also claims that its data centres “are the most interconnected in Sub-Saharan Africa, with customers connecting directly with each other, as well as through the region’s largest and fastest growing IXP (internet exchange point) - ‘NAP Africa’”.

The latest funding facility then is planned to help with construction of a new data centre in Johannesburg to meet demand. Teraco said in a statement that initial phases in the construction of the 'JB2 facility' are expected to commence in 2015.

“Teraco’s premium data centre services are in high demand, and the demand is set to continue underpinned by strong growth in the internet and increased cloud adoption,” said Lex van Wyk, CEO of Teraco, in a statement.

Teraco’s latest fund-raising round also comes after it announced in December 2014 that it is being acquired by “a company backed” by global private equity firm Permira. The buyout deal involves the company acquiring 100% of the equity in Teraco in partnership with management.

Permira has made over 200 investments since 1985 in companies that include tech-giants like Ancestry.com. Meanwhile, the Teraco buyout was Permira’s first-ever African deal.

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