Redstone has off-loaded its infrastructure and datacentre business Comunica Holdings to Coms for £9.5m as it completes a restructuring process that has taken three years under the leadership of Ian Smith.
Smith, chief executive of Redstone, has now drawn a line on its restructuring efforts and revealed that over the past few months there had been several suitors for the Comunica business.
"The Disposal marks the end of a restructuring phase that begun on my appointment in 2010. We believe that the Disposal offers a fair price for our shareholders while offering Coms an opportunity to build upon the restructuring work completed under our management. I would like to take the opportunity to thank the employees of the Redstone ICT Business for their contribution to helping to build a profitable, cash generative business that attracted interest from a number of parties in recent months," he said.
The deal will cost Coms £7.65m now with a further £1.85m due in a years time if the sell-off gets the thumbs up from Redstone shareholders, who will also be asked to approve plans for Redstone to change its name to Castleton Technology.
After shedding Comunica the name change will come into effect and the business will engage in software support and consultancy and the Maxima Information Group, which is a QAD software consultancy specialist, will be retained by the group.
David Breith, chief executive of Coms, said that it had picked up a business with a solid name in the market and a decent client base which it would look to sell some of its additional services to.
"This will be the seventh acquisition since I became chief executive of Coms and I am pleased to report that we are well on our way to delivering our strategy of becoming a full service communications and ICT business," he said.