Harrogate-based IT firm Redcentric plc said it conditionally agreed the sale of Redcentric Data Centres Limited to Stellanor Datacenters Group Limited, a UK data centre operator backed by a fund managed by Frankfurt-based DWS Group, for an enterprise valuation of up to £127 million in cash.

Redcentric has undergone a number of boardroom changes in the past two years.

“Proceeds from the disposal will be strategically allocated to deliver substantial benefits to shareholders and strengthen the group’s future,” said the Harrogate firm.

Redcentric CEO Michelle Senecal De Fonseca said: “We are pleased to announce today the disposal of RDC to Stellanor which is a positive outcome for Redcentric and our shareholders.

“The completion of the DC sale will allow management to focus squarely on the MSP business which has a very strong brand and market position in both the public and private sectors.  

“I am excited at the prospect of driving revenue and margin expansion in the years ahead, which I am confident we will deliver strong returns and shareholder value.”

Aparna Narain, Partner at DWS Group – Infrastructure Investments, said: “The acquisition of RDC by Stellanor represents a transformative step in expanding our UK footprint with high-quality, strategically located assets with 23MW of secured grid capacity and a blue-chip customer base.

“RDC’s well-invested facilities and proven operational excellence align seamlessly with our vision to deliver scalable, secure data centre solutions amid rising demand for edge computing in the UK.

“We look forward to integrating these operations into Stellanor to drive innovation and superior service for our combined clients.”