2nd Apr 2015 07:03
LONDON (Alliance News) - Redcentric PLC said Thursday it has acquired IT services provider Calyx Managed Services Ltd from MXC Capital Ltd for GBP12 million, just two months after it was acquired by MXC from Better Capital PPC Ltd.
Redcentric expects the acquisition to immediately add to earnings. Calyx's portfolio of services and range of customers are an "excellent strategic addition", Redcentric said.
MXC had acquired Calyx for GBP9 million from Better Capital in February. However, after undertaking a strategic review, it opted to sell two divisions of the business for GBP5.6 million, selling Break Fix to Daisy Group PLC for GBP3.8 million and Carrier Services to Chess Ltd for GBP1.8 million.
MXC said the net return from Calyx following the disposals, after restructuring costs and advisory fees, is expected to be around GBP5.3 million.
Redcentric's acquisition of Calyx is condition on the completion of the disposals of Break Fix and Carrier Services. In 2014 Calyx's IT managed services and professional and infrastructures businesses produced a gross profit of GBP5.1 million on revenue of GBP9.1 million.
"This acquisition builds on our successful and growing Redcentric platform; following the integration of Calyx we will seek to augment our strong organic growth with further acquisitions that fit our investment criteria," said Chief Operating Officer of Redcentric Fraser Fisher.
"The subsequent disposals of the Calyx businesses have been to industry buyers where we expect they will thrive. We are delighted to have concluded this series of transactions to the benefit of each acquirer as well as to the benefit of MXC," said Chief Executive Officer of MXC Marc Young in a statement.
Redcentric's acquisition will be funded by a new GBP40 million bank facility with Barclays Bank PLC and The Royal Bank of Scotland PLC.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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