Redstone flogs Irish arm

Integrator continues with its overhead reduction plan by selling Irish subsidiary for £2.25m

The wholly owned Irish subsidiary sold for approximately £2.25m

Redstone has offloaded another part of its business with the sale of its Irish operation to PFH Technology.

The sale of the wholly owned Irish subsidiary, for approximately £2.25m, comprises the entire business, undertaking and trading assets, excluding property and intra-group indebtedness of Redstone Technology Limited arising from the acquisition of Xpert Group in 2005.

Redstone will keep cash of approximately £300,000, and cash consideration of £2m will be received on completion of the sale, with the balance deferred until the first anniversary of the completion date.

The VAR claims the sale is in line with the group’s ongoing review process to ‘dispose of and discontinue certain non-core assets and businesses’.

Last month Redstone offloaded its Marcom installation and maintenance arm to rival Maintel for £1.75m, along with a small chunk of its Redstone Converged Solutions business unit.

In a statement to the London Stock Exchange, the firm said the disposal will ‘reduce group overheads going forward and is a further step in refocusing the Redstone business’.

Tony Weaver, chief executive of Redstone, said: “We are pleased to have completed another stage in delivering our strategy of refocusing Redstone’s operating activities, enabling the group to concentrate on building the leading network-based, end-to-end, managed data services and applications provider to the UK mid-market.”