Pair of acquisitions add scale and capability to managed services provider

Harrogate-based IT managed services provider, Redcentric, has accelerated its growth strategy with two more acquisitions.

It has bought three data centres from Sungard Availability Services (in administration) and also the entire share capital of 4D Data Centres Ltd.

In order to acquire Sungard’s data centres, Redcentric committed to paying a minimum of £11m, conditional on certain contracted revenue thresholds being met.

However, as the minimum thresholds were not met, Redcentric says it exercised its right to proceed with the acquisition at a reduced price of £10.12m. The initial consideration has been satisfied in cash.

On 27 June 2022 Redcentric acquired 4D for a consideration net of cash and debt like items of £10m.

These latest deals follow following the company’s acquisitions of Piksel Industry Solutions Limited, 7 Elements Limited and Sungard’s consulting business.

Peter Brotherton, Redcentric CEO, said: “With these two acquisitions, we have now completed five acquisitions in the last nine months and totally transformed the company.

“We have added over 600 customers to our base and increased run rate revenues by circa 60%.

“The acquisition of Piksel has broadened our product offerings by adding full hyper-scale capability; the 7 Elements and Sungard consultancy acquisitions have significantly strengthened our security product portfolio; and the Sungard DCs acquisition has added new recovery-based services.

“We believe we now have the most comprehensive IT and Telecommunications product and solutions offering in the market.”

Redcentric says Sungard’s data centre business is renowned for its highly resilient data centre estate and its assured IT recovery services. It hosts and manages the mission critical infrastructure for a strong blue-chip enterprise customer base.

4D is a successful hosting business operating out of two data centres within the UK, with a focus on colocation services.