Acquisition of City Lifeline

RNS Number : 3713N

Redcentric PLC

29 January 2016

 

29 January 2016

Redcentric plc

("Redcentric" or the "Company")

Acquisition of City Lifeline

Redcentric plc (AIM:RCN), a leading UK IT managed services provider, is pleased to announce the acquisition of City Lifeline Limited ("City Lifeline") for a total consideration of £4.8 million, paid in cash on completion and subject to adjustment for cash, debt and normal working capital.

City Lifeline owns and operates one of the best connected datacentres in London, and has been trading for over 20 years. Its site in Tech City provides a secure, reliable location from which its customers operate business critical infrastructure. In the year to 31 December 2015 City Lifeline generated revenue of £3.5 million, all recurring, and EBITDA of £0.6 million.

The acquisition of City Lifeline represents another step in Redcentric's growth strategy, providing a well-established London datacentre to complement its existing infrastructure of owned datacentres in Harrogate, Reading and Cambridge together with its national fibre network.

As well as continuing to support City Lifeline's existing customers, the London datacentre will provide Redcentric with significant expansion capacity. The acquisition is expected to be immediately earnings enhancing.

Fraser Fisher, Chief Executive Officer of Redcentric, commented;

"City Lifeline is a great addition to our network of datacentres, something we've been seeking in London for a while. This is a low risk move, earnings enhancing from day one and is a further step in the Redcentric growth strategy".

Enquiries:

Redcentric plc	[phone]
Fraser Fisher, Chief Executive Officer
Tim Coleman, Chief Financial Officer
Numis Securities Limited - Nomad & Joint Broker	[phone]
Simon Willis / Oliver Hardy / James Serjeant
finnCap Ltd - Joint Broker	[phone]
Stuart Andrews / Rhys Williams
MXC Capital Markets LLP - Financial Adviser	[phone]
Marc Young / Charlotte Stranner
Tulchan	[phone]
James Macey White / Matt Low

 

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