Redcentric plc agrees to sell its dedicated data centre business to Stellanor Datacenters Group in a deal worth up to £127 million.
- Redcentric Data Centres Limited, which operates eight data centres across the UK, will now become part of Stellanor’s portfolio. This includes six data centres in London and the South East, as well as locations in Cambridge and West Yorkshire.
- Redcentric plans to use the proceeds from the sale to reduce debt, return capital to shareholders, and retain funds for future growth opportunities in their managed services provider (MSP) operations.
- The sale of the data centre business allows Redcentric to focus on its core MSP business, while Stellanor aims for aggressive growth in the sector with the backing of DWS Group. The deal is expected to be completed by May 2026.
In a significant move, Redcentric plc has agreed to sell its dedicated data centre business to Stellanor Datacenters Group for a deal worth up to £127 million. This sale includes eight data centres across the UK, with six strategically located in London and the South East, along with facilities in Cambridge and West Yorkshire. The deal, expected to be finalized by May 2026, will enable Redcentric to streamline its focus on the managed services provider (MSP) sector, where it holds a strong market position.
The proceeds from the sale will be utilized by Redcentric in three ways: reducing group debt, returning capital to shareholders, and retaining funds for potential growth opportunities within their MSP operations. With the data centre business no longer aligning with their core operations, the decision to sell to Stellanor, backed by DWS Group, makes strategic sense. Stellanor’s vision for aggressive growth in the sector, along with their recent acquisition of data centres from Colt Technology Services, signals a promising future for the combined entity. Aparna Narain, Partner at DWS Group, expressed enthusiasm for the acquisition, highlighting the potential to deliver scalable, secure data centre solutions amid rising demand for edge computing in the UK.
As the deal progresses, Redcentric will continue to operate the data centre business as a carved-out operation, focusing on finalizing separation, regulatory, financing, and property processes. This strategic move not only benefits Redcentric by allowing them to concentrate on their core business but also positions Stellanor for significant growth in the UK data centre sector.
