18th Nov 2013 09:23
LONDON (Alliance News) - Redcentric PLC Monday said it will buy the managed services unit of InTechnology PLC for GBP65 million in cash and launched a GBP64 million placing to help pay for the deal.
In a statement, Redcentric said the deal will be transformational, doubling total revenues and increasing its recurring revenues to more than 80%.
The company will place 80 million shares at 80 pence each.
"Redcentric will become a go to provider in the mid market for end-to-end managed services as we will be one of very few providers with high quality data centre assets connected by a national data network with a significant cloud platform and a broad suite of technical support skills," Chief Executive Tony Weaver said in a statement.
Redcentric shares were up 10.2% at 92 pence early Monday, one of the biggest gainers on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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