Redcentric, the Harrogate-based IT managed services provider, has agreed to sell its data centre business, Redcentric Data Centres (RDC or DC), to Stellanor Datacenters Group, a UK data centre operator backed by a fund managed by DWS Group.
Proceeds from the £127m deal will be used to strengthen Redcentric’s future. This includes reducing group debt to enhance financial stability, returning capital to shareholders, most likely by way of a Tender Offer, and retaining sufficient capital to evaluate growth opportunities.
Michelle Senecal De Fonseca, CEO of Redcentric plc, said: “We are pleased to announce today the disposal of RDC to Stellanor which is a positive outcome for Redcentric and our shareholders.
“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.”
Aparna Narain, partner at DWS Group – Infrastructure Investments, said: “The acquisition of RDC by Stellanor represents a transformative step in expanding our UK footprint with high-quality, strategically located assets with 23MW of secured grid capacity and a blue-chip customer base.
“RDC’s well-invested facilities and proven operational excellence align seamlessly with our vision to deliver scalable, secure data centre solutions amid rising demand for edge computing in the UK. We look forward to integrating these operations into Stellanor to drive innovation and superior service for our combined clients.”
