LONDON (ShareCast) - (Sharecast News) - Redcentric announced on Thursday that it has agreed to sell its data centre business, Redcentric Data Centres, to Stellanor Datacenters Group for up to £127m in cash, in a deal aimed at strengthening its balance sheet, returning capital to shareholders, and focusing on growth in managed IT services.
The AIM-traded firm said the sale, based on an enterprise value of between £115m and £127m subject to final adjustments, covered Redcentric's entire data centre operations.

Completion was expected by the end of May next year, following the satisfaction of regulatory and contractual conditions, with final adjustments due by June.

Redcentric said the disposal would deliver "substantial benefits" to shareholders through debt reduction, a potential capital return via a tender offer, and funding for expansion in its managed services provider (MSP) business.

The group currently has a £60m revolving credit facility, of which £41m was drawn, and said it expected to "materially reduce both the ceiling of this credit facility and the amount drawn" once proceeds were received.

"We are pleased to announce today the disposal of RDC to Stellanor which is a positive outcome for Redcentric and our shareholders," said chief executive Michelle Senecal De Fonseca.

"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."

The transaction represented a multiple of about 15.1 times adjusted EBITDA for the 2025 financial year, and was subject to typical completion accounts adjustments and retention mechanisms for outstanding property and commercial matters.

"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," said Aparna Narain, infrastructure investments partner at DWS Group, which backs Stellanor.

"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."

Redcentric said further updates on the timing of completion and final consideration would be provided in due course.

At 1039 BST, shares in Redcentric were down 6.42% at 127.27p.

Reporting by Josh White for Sharecast.com.

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