IT managed services provider Redcentric ends talks over potential sale

The Yorkshire-based IT managed services provider Redcentric has ended talks over a potential sale of the business.

Redcentric has provided an update for the City.
Redcentric has provided an update for the City.

In a statement, Redcentric said: "On 2 September 2020 the board of directors of Redcentric announced that, having successfully completed the integration of historical acquisitions and implemented efficiency initiatives across the business, the company was in an excellent position to actively start to explore the many opportunities open to it to deliver further shareholder value.

"In light of this confidence in the position of the company, the board believed that it was the correct time to ensure that it had explored all options open to it to deliver shareholder value, including continued organic growth and/or evaluating potential acquisitions or the potential sale of the company.

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"Accordingly, and following media speculation at the time, Redcentric announced the commencement of a formal sale process as part of a broader strategic review."

Following that announcement, the board held "constructive discussions with a significant number of interested parties".

However, these discussions did not materialise into any fully funded offers. Redcentric announced that the board has decided to terminate the formal sale process with immediate effect.

The company also announced its half year results to September 30 2020, which show a 7 per cent increase in revenue to £46.2m and a 19 per cent increase in Adjusted EBITDA to £12.3m.

The statement added: "The board is focused on building on the existing strong momentum within the business and, as noted in its announcement on 2 September 2020, will continue to evaluate potential options in relation to organic growth and/or potential acquisitions that might be made by the company in order to achieve maximum value for shareholders in the medium term."