Redcentric, Harrogate IT firm, buys Sungard assets

Harrogate-based IT managed services firm Redcentric Plc has announced the acquisition of business and assets of Sungard data centres for up to £22 million.

Redcentric said its subsidiary Redcentric Solutions Ltd has exchanged conditional contracts for the acquisition of the business and assets relating to the operation of up to three data centres.

“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,” said Redcentric.

“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 £11m.

“The initial maximum consideration payable on completion, assuming acquisition of all three Sungard DCs, is £22m.

“Pursuant to the performance criteria, which expire twelve months following completion, there is a potential further up to £7.625m payable.

“All consideration payable will be satisfied in cash.”

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