Redcentric PLC Acquisition of business and assets of Sungard (9675N)
07 Junho 2022 - 4:07AM
UK Regulatory
TIDMRCN
RNS Number : 9675N
Redcentric PLC
07 June 2022
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of MAR.
Redcentric plc
Acquisition of business and assets of Sungard data centres
Redcentric plc (AIM: RCN) ("Redcentric" or the "Company"), a
leading UK IT managed services provider, is pleased to announce
that its subsidiary, Redcentric Solutions Ltd ("RSL"), has
exchanged conditional contracts for the acquisition of the business
and assets relating to the operation of up to three data centres
("Sungard DCs") and the provision of other colocation and network
services from Sungard Availability Services (UK) Limited (in
administration) ("Sungard UK").
Completion of the acquisition of each of the Sungard DCs is
conditional on certain revenue thresholds being met based on
customers in each of the Sungard DCs agreeing new contract terms
with RSL. Completion will occur once the thresholds are met and no
later than 23 days following exchange of contracts. In the event
the thresholds are not met in relation to each of the Sungard DCs,
the acquisition of the relevant Sungard DC will not complete.
The value of the acquisitions is calculated by reference to the
annualised recurring revenue derived from Sungard DC customers with
which RSL agrees new contract terms and certain other performance
criteria. The initial minimum consideration payable on completion,
assuming the acquisition of all three Sungard DCs, is GBP11m. The
initial maximum consideration payable on completion, assuming
acquisition of all three Sungard DCs, is GBP22m. Pursuant to the
performance criteria, which expire twelve months following
completion, there is a potential further up to GBP7.625m payable.
All consideration payable will be satisfied in cash.
Due to the nature of the transaction and its dependence on the
value of new contracts agreed with Sungard DC customers, further
details in relation to the acquisition, including financial
information, will be provided on completion, should it occur.
Redcentric further announces that it has completed the
acquisition of the business carried on by Sungard UK of providing
consulting and AWS cloud related services, for a consideration of
GBP4.2m, paid in cash.
Peter Brotherton, Chief Executive Officer, Redcentric,
commented:
" Following completion of the capability acquisitions of Piksel
Industry Solutions Ltd and 7 Elements Ltd in September 2021 and
March 2022 respectively, this acquisition is the first scale
acquisition completed by Redcentric, in line with its strategy.
The Sungard DCs principally provide colocation and cloud
services which complement the Redcentric offering perfectly . In
addition, the Sungard DCs come with a superb blue chip customer
base and should the acquisitions complete, they provide Redcentric
with an exciting opportunity to accelerate its growth."
Enquiries:
Redcentric plc
Peter Brotherton, Chief Executive Officer
David Senior, Chief Financial Officer +44 (0)800 983 2522
finnCap Ltd - Nomad and Sole Broker
Marc Milmo / Simon Hicks / Charlie Beeson (Corporate Finance) +44 (0)20 7220 0500
Andrew Burdis / Sunila de Silva (ECM)
Oakley Advisory Limited - Financial Advisor
Chris Godsmark / Marc Jones / James Whyms +44 (0)20 7766 6900
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END
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