Redcentric starts trading as shareholders approve £65m InTechnology deal

IT group Redcentric was re-admitted to the stock market this morning as an enlarged business after shareholders approved its £65m acquisition of InTechnology.

It was announced last month that entrepreneur Peter Wilkinson had sold Harrogate-based InTechnology – a deal which will create one of the largest independent managed services businesses in the UK.

Redcentric’s acquistion of the company, which had pre-tax profits of £3.2m on revenue of £41m in the year to the end of March 2013, will double its revenues and create a business with more than 2,000 customers, four major data centres and increase recurring revenues to more than 80%.

The enlarged business will have its headquarters in Harrogate with operations in London, Cambridge and Reading.

Redcentric announced it was funding the acquisition through a share placing of 80m shares of 80p to raise £64m with the remainder financed through an increase in its existing banking facilities.

Because of the size of the deal, Redcentric’s acquisition of InTechnology was classed as a reverse takeover by AIM.

The enlarged business has been re-admitted to trading on AIM under the ticker RCN, with first dealings starting this morning.

Tony Weaver, chief executive of Redcentric, said: “The board has been encouraged by the positive reaction from both customers and investors to this transformational acquisition. We are focused on the job of integrating the businesses and creating the most successful independent managed services business in the UK.”

Last night, Redcentric’s closing share price was 102p.