Redcentric has picked up Calyx Managed Services paying a premium for the business just a matter of weeks after it changed hands between different venture capitalists.
Earlier this year MXC Capital paid £9m to Better Capital for Calyx and then started to split the business up with the break fix operation being picked up by Daisy and the carrier business being acquired by Chess last month.
Redcentric has paid £12m to pick up the remaining core managed service business to bolster its own position as a leading player in that side of the market. The deal will be funded by new bank facilities that Redcentric can access after it got access to a five-year £40m revolving credit facility.
Redcentric expects the addition of Calyx managed Services will deliver to the bottom line from the start and it would start to provide customers with a wider portfolio of managed services.
"We are delighted with this acquisition: it fits our strategy well, and will be earnings enhancing as we expect to generate operating margins in line with our existing business. We welcome the Calyx clients and look forward to providing a high quality service while offering a broader range of solutions," said Fraser Fisher, COO of Redcentric.
"This acquisition builds on our successful and growing Redcentric platform; following the integration of Calyx we will seek to augment our strong organic growth with further acquisitions that fit our investment criteria," he added.
Redcentric stated that the timing of the deal followed on from the recent divestments and the acquisition was "conditional on the completion of these disposals".
"Calyx is now a focused IT managed services and professional and infrastructure services business, free of liabilities arising from the restructuring process," the firm stated.