MXC makes speedy exit with Calyx sale

CALYX Managed Services, the Manchester-based cloud computing firm, has been sold for the second time in just over a month, this time to a Yorkshire firm for £12m.

Didsbury-based Calyx was acquired by London-based technology investor MXC Capital for £9m from Better Capital on February 23, and MXC has now sold the business to AIM-listed Harrogate company Redcentric.

Calyx’s head office is at the Towers Business Park and it has a service repair centre in Hyde, east Manchester.

The cash deal, to be funded through a new bank facility, is expected to complete on April 13, Redcentric said.

Calyx, which last month sold its Break Fix and Carrier Services divisions for £5.5m as part of a restructuring process, generated a turnover of £9.1m and a gross profit of £5.1m in its IT managed services and professional and infrastructure services business.  As at December 31 2014, the business had gross assets of £4.3m.

Marc Young, chief executive of MXC, said “Following MXC’s acquisition of Calyx, a strategic review and restructuring of its businesses was carried out. The subsequent disposals of the Calyx businesses have been to industry buyers where we expect they will thrive.

“We are delighted to have concluded this series of transactions to the benefit of each acquirer as well as to the benefit of MXC.”

MXC said its net return on the deal would be £5.3mn following the various disposals and after restructuring costs and professional  advice.

Fraser Fisher, chief operating officer of Redcentric, said: “We are delighted with this acquisition. It fits our strategy well, and will be earnings enhancing as we expect to generate operating margins in line with our existing business.

“We welcome the Calyx clients and look forward to providing a high quality service while offering a broader range of solutions. This acquisition builds on our successful and growing Redcentric platform. Following the integration of Calyx we will seek to augment our strong organic growth with further acquisitions that fit our investment criteria.”