M&A Deal Summary

Berkshire Partners and Columbia Capital Acquire Teraco

On January 25, 2019, private equity firm Berkshire Partners and growth capital firm Columbia Capital acquired information technology company Teraco from Permira

Acquisition Highlights
  • This is Berkshire Partners’ 5th and Columbia Capital’s 4th transaction in the Information Technology sector.
  • This is Berkshire Partners’ 1st and Columbia Capital’s 1st transaction in South Africa.
Investment Fate
  • Teraco was sold to a consortium of buyers in 2022.

M&A Deal Summary

Date 2019-01-25
Target Teraco
Sector Information Technology
Buyer(s) Berkshire Partners
Columbia Capital
Sellers(s) Permira
Deal Type Secondary Buyout

Target

Teraco

Johannesburg, South Africa
Teraco is a provider of carrier and cloud-neutral colocation data centers and with over 18 000 cross-connects. As the first provider of highly resilient, vendor-neutral data environments in sub-Saharan Africa, Teraco brings global content closer to the digital edge. Teraco was founded in 2008 and is based in Johannesburg, South Africa.

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Buyer(S) 2

Buyer

Berkshire Partners

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1984
PE ASSETS 16.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Berkshire Partners is a private equity firm focused on investing in businesses with strong management and that lead their respective markets. Berkshire will consider investments in both public and private companies. Prospective transactions for private companies include leveraged buyouts, recapitalizations, growth capital financings, and privatizations. Public company transactions include take-privates, PIPEs, and equity stakes. Berkshire generally looks to invest $150 to $500 million of equity capital per transaction in companies valued up to $2 billion. Sectors of interest include industrial manufacturing, consumer products, retailing, transportation, communications and business services. Berkshire Partners was formed in 1984 and is based in Boston, Massachusetts.


DEAL STATS #
Overall 79 of 105
Sector: Information Technology M&A 5 of 7
Type: Secondary Buyout M&A Deals 14 of 23
Country: South Africa M&A 1 of 1
Year: 2019 M&A 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-01-01 Opening Ceremony

New York, New York, United States

Opening Ceremony is a multifaceted fashion brand and retailer, founded in 2002 by two college friends, Carol Lim and Humberto Leon, as a place to share their passions for travel, art and fashion. What began as a single store in downtown New York is now a global community, with additional retail outposts in Los Angeles, Tokyo and New York’s Ace Hotel. The company has also established active wholesale and e-commerce channels as well as a significant online editorial presence.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-03-07 RJW Logistics Group

Woodridge, Illinois, United States

RJW Logistics Group is a supply chain solutions provider, with a specialized focus on LTL consolidation services designed for consumer packaged goods suppliers to large, national retailers. RJW Logistics Group was founded in 1981 and is based in Woodridge, Illinois.

Buy -
Buyer

Columbia Capital

Investor Investor Investor Investor Investor


Category Growth Capital Firm
Founded 1989
PE ASSETS 7.1B USD
Size Mega
Type Sector Focused
DESCRIPTION

Columbia Capital is a growth capital firm focused on the IT sector. The Firm looks to commit $15 to $40 million to growth stage North American and Western European companies operating in the enterprise IT, internet infrastructure, and mobile communications sectors. Columbia Capital was established in 1989 and is headquartered in Alexandria, Virginia.


DEAL STATS #
Overall 11 of 26
Sector: Information Technology M&A 4 of 8
Type: Secondary Buyout M&A Deals 1 of 1
Country: South Africa M&A 1 of 1
Year: 2019 M&A 4 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-01-11 SummitIG

Sterling, Virginia, United States

SummitIG is a custom network solution and bandwidth infrastructure, provider. Leveraging its extensive network infrastructure across the state, SummitIG specializes in delivering dark fiber networks that support and extend data centers’ connectivity. SummitIG was founded in 2012 and is based in Sterling, Virginia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-07-24 Altamira Technologies

McLean, Virginia, United States

Altamira Technologies is a big data, cloud, and analytics firm serving the national security community. Altamira is a prominent developer of advanced technologies and system integration with a full spectrum of capabilities spanning the technology continuum. Altamira Technologies was founded in 1999 and is based in Mclean, Virginia.

Sell -

Seller(S) 1

SELLER

Permira

London, United Kingdom

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1985
PE ASSETS 80.0B EUR
Size Mega
Type Sector Agnostic
DESCRIPTION

Permira is a mega-sized private equity firm that targets large company investments around the world. Permira invests to support acquisitions, leveraged buyouts, take-privates, turnarounds, and growth buyouts. Areas of interest include healthcare, financial services, chemicals, consumer products and services, industrial products and services, technology, media, and telecom. Permira will consider opportunities in Europe, Asia, and North America. Permira was formed in 1985 and has offices in Menlo Park, Frankfurt, Luxembourg, London, Hong Kong, Madrid, Milan, Paris, Stockholm, Tokyo, Guernsey and New York City.


DEAL STATS #
Overall 69 of 97
Sector: Information Technology M&A 2 of 6
Type: Secondary Buyout M&A Deals 18 of 29
Country: South Africa M&A 1 of 1
Year: 2019 M&A 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-12-20 Cielo

Wauwatosa, Wisconsin, United States

Cielo is a pure-play recruitment process outsourcing (RPO) provider. Cielo offers customized solutions that help clients align talent strategies to business objectives. Cielo was founded in 2005 and is based in Wauwatosa, Wisconsin.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-01-31 Hana Group

Levallois-Perret, France

Hana Group is a global operator of in-store food kiosks in all retail formats and high traffic areas, offering ultra-fresh food on-the-go prepared by chefs in front of consumers, providing in-store entertainment and continuous product and concept innovation. Initially focused on sushi kiosks, Hana Group has developed other concepts, including pan-Asian food, as well as Italian and Mediterranean cuisines and operates under a portfolio of 14 brands. Hana Group was founded in 2012 and is based in Levallois-Perret, France.

Buy -