Redcentric completes data centre sale for £122.85m

1st May 2026 11:10

(Sharecast News) - Redcentric said on Friday that it had completed the sale of its data centre business to Stellanor Datacenters Group for an estimated £122.85m, enabling a planned capital return of more than £90m to shareholders and a reduction in debt.

The AIM-traded IT managed services provider said the sale of Redcentric Data Centres, first announced on 23 October, had completed after all conditions precedent were satisfied.

An initial payment of £115.4m was received on 30 April, with the remaining consideration expected by 31 July once post-completion adjustments have been concluded.

Redcentric said the transaction represented a pivotal milestone, allowing the group to sharpen its focus on growth opportunities within its remaining managed services provider business.

The board said it planned to propose an equity tender offer at 160p per share, subject to shareholder approval. The tender offer is expected to return more than £90m to shareholders, with a circular setting out full details expected to be published in June and settlement anticipated in July.

Redcentric said it could also make on-market share buybacks, depending on market conditions, where the board considers them an attractive use of capital and in shareholders' interests.

The firm said it would also reduce its revolving credit facility from £60m to £30m and repay a significant portion of the drawn facility, lowering drawings from £40m to about £19m.

Its board said it remained committed to maintaining a strong balance sheet with modest net borrowing, which it views as a positive differentiator versus peers.

The company said the sale followed its decision to separate the group's two distinct business units, crystallising an attractive valuation for the data centre assets and allowing management to focus on the core MSP business.

Redcentric said it had assessed the capital requirements of the continuing MSP business and believed the capital available to the group, together with its profitable outlook and cash generation profile, would be sufficient to support organic growth.

Non-executive chairman Richard McGuire said the transaction had "crystallised significant value" for shareholders.

"This transaction crystallises significant value for Redcentric shareholders and allows us to return the majority of the proceeds directly to them through a substantial capital return," he said.

"At the same time, the transaction further strengthens the group's balance sheet by significantly reducing debt, enabling Michelle and the management team to focus exclusively on Redcentric's successful core Managed Services business."

At 1042 BST, shares in Redcentric were up 1.15% at 132p.

Reporting by Josh White for Sharecast.com.

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