Redcentric ends sale process following discussions with Macquarie

Katharine Hidalgo
13 November 2020

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IT services provider Redcentric has terminated its formal sale process following discussions with Macquarie and trade buyers.

Discussions did not materialise into any fully funded offers, according to a statement.

On 2 September 2020, the board of directors of Redcentric announced that, having completed the integration of acquisitions and implemented efficiency initiatives across the business, the company was in a position to actively start to explore opportunities to deliver shareholder value.

Stifel was mandated to run the process.

Redcentric confirmed reports that it was in discussions with private equity firm Macquarie and communications group Six Degrees and was expected to conclude the process by Q4 2020, according to a report by Unquote sister publication Mergermarket.

Concurrent with the announcement, Redcentric has also released its half-yearly results to 30 September 2020, which show a 7% increase in revenue to £46.2m and a 19% increase in adjusted EBITDA to £12.3m. Since 31 March 2020, net debt has reduced by £17.5m to £17.0m.

UK-based Redcentric is currently trading at £123.32 per share, while it was trading at £147 on 2 September 2020. The company is a managed IT services provider offering a range of IT services including application, collaboration, infrastructure, network, security and business mobile software.