Redcentric plc, an IT managed services provider, has conditionally agreed the sale of its data centre business to Stellanor Datacenters Group.
Stellanor is a London-based data centre operator backed by a fund managed by DWS Group.
The deal for Redcentric Data Centres is for a cash consideration based on an enterprise valuation of up to £127 million.
Harrogate-based Redcentric said the proceeds would be used to reduce its debts as well as return capital to shareholders.
The firm has a revolving credit facility of up to £60m, of which £41m has been drawn.
The transaction is expected to legally complete by the end of May 2026, with any outstanding property and commercial negotiations expected to conclude by the end of June 2026 – at which point the final amount paid in the deal will be known. This is expected to be between £115m and £127m.
If it were to reach £127m, it would represent a FY25 enterprise value/adjusted EBITDA of 15.1x.
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“We are pleased to announce today the disposal of RDC to Stellanor which is a positive outcome for Redcentric and our shareholders,” said Michelle Senecal De Fonseca, CEO.
“The completion of the DC sale will allow management to focus squarely on the MSP business which has a very strong brand and market position in both the public and private sectors.
“I am excited at the prospect of driving revenue and margin expansion in the years ahead, which I am confident we will deliver strong returns and shareholder value.”
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