Redcentric has acquired the share capital of InTechnology Managed Services in a £65m cash deal that will help the firm double its revenues and become one of the largest players in the UK market.
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The two firms have slightly different angles on the managed services market, with Redcentric having networking, security and application skills and InTechnology being seen as a data centre estate and VoIP capacity expert.
The deal should help Redcentric increase its recurring revenues by more than 80% and extends its data centre footprint with the total estate after the takeover containing 1255 racks.
The deal, which is classed as a reverse takeover by AIM, will need to get shareholder approval at a meeting next month, and marks the largest deal so far undertaken by the business that was part of Redstone until earlier this year.
"This transformational acquisition will help the company to achieve its aim of becoming the leading independent managed services business in the UK. Redcentric will become a go to provider in the mid market for end-to-end managed services as we will be one of very few providers with high quality data centre assets connected by a national data network with a significant cloud platform and a broad suite of technical support skills," said Tony Weaver, CEO of Redcentric.
In response, Peter Wilkinson, CEO of InTechnology, said that this was a decision he had been mulling over for a while as he pondered the future for the managed services business.
"I have felt for some time that InTechnology Managed Services needed to become a much bigger force in the UK market. This transaction instantly achieves that aim, the two companies combined creates a major force in the market which provides an unrivalled range of quality products and services to its large expanded customer base," he said.