Redcentric plc, the Harrogate-based IT managed services provider (MSP), announced the successful completion of the sale of its entire data centre business, Redcentric Data Centres Limited, to Stellanor Datacenters Group Limited for an estimated £122.85 million.
“The Transaction, originally announced on 23 October 2025, has completed following the satisfaction of all conditions precedent,” said Redcentric.
“This marks a pivotal milestone for the Group, enabling a substantial return of capital to shareholders, significant debt reduction, and a sharpened strategic focus on growth opportunities within the remaining Managed Services Provider (MSP) business.
“An initial payment of £115.4 million was received by the Company on 30 April 2026 in accordance with the terms of the agreement. The remaining consideration is expected to be received by 31 July 2026, once the post completion adjustments have been concluded …
“The Board has prioritised the use of proceeds to deliver a substantial near-term return of capital to shareholders while strengthening the Group’s balance sheet and supporting the core established successful MSP business.”
Redcentric said it intends to propose an equity tender offer at a price of 160 pence per share. The Tender Offer is expected to return in excess of £90 million to shareholders and will be subject to shareholder approval.
In addition to the equity Tender Offer, the company may, subject to market conditions, make on-market purchases of its own ordinary shares.
Redcentric said also said it will reduce its Revolving Credit Facility (RCF) from £60 million to £30 million and repay a significant portion of its drawn facility, lowering it from £40 million to approximately £19 million.
Redcentric chair Richard McGuire said: “I am delighted to thank the teams at both Redcentric and Stellanor for their outstanding efforts and professionalism, which have enabled the successful completion of this complex transaction.
“This transaction crystallises significant value for Redcentric shareholders and allows us to return the majority of the proceeds directly to them through a substantial capital return.
“At the same time, the transaction further strengthens the Group’s balance sheet by significantly reducing debt, enabling Michelle and the management team to focus exclusively on Redcentric’s successful core Managed Services business.”