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Redcentric offloads datacentres to focus on MSP
Deal struck that leaves firm with clear focus on growing managed services business
Redcentric has sold off its datacentre business in a cash transaction to concentrate on a future based around the managed services business.
The channel player had been looking to offload the datacentre operation, and provided an update last month that indicated it was at an advanced stage of negotiations with a preferred bidder.
Fast-forward a few weeks, and the deal has now been done, with Stellanor Datacenters Group picking up the business for a cash consideration based on a valuation of up to £127m.
There are some things to be worked out to get the deal over the line, but the expectation is that things will be sorted by May 2026 at the latest. The Redcentric Board expects any outstanding property and commercial negotiations to conclude by the end of June 2026, at which point the final adjustment amount will be known.
Redcentric split its datacentre and MSP operations earlier this year, and has since looked to divest the business to leave the managed service operation as the primary focus.
In an update last month, the firm’s board shared its belief that the prospects for an MSP business remain strong, with an opportunity for future growth.
The benefits of disposing of the datacentre business are financial, with the ability to reduce the firm’s revolving credit facility, as well as setting up the firm’s MSP arm with plans for more investment.
“We are pleased to announce today the disposal of RDC to Stellanor, which is a positive outcome for Redcentric and our shareholders,” said Michelle Senecal de Fonseca, CEO of Redcentric. “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.”
Shareholder value
She added that the deal would put the business in a strong position. “I am excited at the prospect of driving revenue and margin expansion in the years ahead, which I am confident will deliver strong returns and shareholder value,” said Senecal de Fonseca.
Stellanor is backed by DWS Group, and Aparna Narain, partner at DWS Group – Infrastructure Investments, said the move to pick up Redcentric’s datacentre business would strengthen its position in that market.
“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,” she said. “RDC’s well-invested facilities and proven operational excellence align seamlessly with our vision to deliver scalable, secure datacentre solutions amid rising demand for edge computing in the UK.”
In Redcentric’s most recent numbers, the results for the combined datacentre and MSP business in the year ended 31 March saw the firm deliver an increase in revenues to £169.9m from £163.2m in the previous year. Recurring revenue stood firm at 81%, accounting for £155m, compared with £149.1m in FY ’24. Adjusted EBITDA jumped from £28.3m to £35.4m.
In FY ’25, the MSP business grew by 8.3%, with a decent performance across its three core service areas of cloud, connectivity and communications. Recurring revenues accounted for 89.3% of the total.
