IT managed services provider Redcentric has completed the £122.9m sale of its data centre business.

The listed company announced in October that it had agreed the sale of Redcentric Data Centres Ltd to Stellanor Datacentres Group Ltd, a London-headquartered data centre operator backed by a fund managed by DWS Group.

The deal has now completed following the satisfaction of all conditions precedent.

Redcentric Data Centres has sites in London, Gatwick, Reading, Woking, Byfleet, Elland and Cambridge.

Harrogate-headquartered Redcentric said the sale marked a “pivotal milestone for the group”. It is set to enable a substantial return of capital to shareholders, significant debt reduction, and a sharpened strategic focus on growth opportunities within the remaining Managed Services Provider (MSP) business.

The board intends to propose an equity tender offer at a price of 160 pence per share, which is expected to return in excess of £90m to shareholders.

The group will reduce its revolving credit facility (RCF) from £60m to £30m and repay a significant portion of the drawn facility, lowering it from £40m to approximately £19m.

Richard McGuire, non-executive chairman of Redcentric, said: “I am delighted to thank the teams at both Redcentric and Stellanor for their outstanding efforts and professionalism, which have enabled the successful completion of this complex transaction.

 

“This transaction crystallises significant value for Redcentric shareholders and allows us to return the majority of the proceeds directly to them through a substantial capital return. At the same time, the transaction further strengthens the group’s balance sheet by significantly reducing debt, enabling Michelle and the management team to focus exclusively on Redcentric’s successful core Managed Services business.”

***END***

Disclaimer:  DATACENTRE.ME may not be held responsible or liable for the content or details within this news article.

For further information, please refer to the full details of this article via the original source here.