Redcentric grabs City Lifeline

MSP makes second acquisition in less than a year with connected datacentre buy

Bullish MSP Redcentric has acquired 20-year old connected datacentre owner City Lifeline Limited as it continues on its quest for growth.

The firm paid a total consideration of £4.8m for the London-based firm, which is located in Tech City, and which generated revenue of £3.5m for its last financial year, with EBITDA of £600,000.

The deal was for cash on completion and is subject to adjustment for cash, debt and normal working capital.

Back in April last year, Redcentric swallowed Calyx Managed Services for £12m after buying it from private equity backer MCX Capital, and hinted at the time that there would be more acquisitions to come.

According to a statement, this latest acquisition will provide Redcentric with ‘significant' expansion capacity, and will be ‘immediately earnings enhancing'.

It adds to its existing datacentre presence in Harrogate, Reading and Cambridge, along with its national fibre network.

Fraser Fisher, chief executive of Redcentric, said: "City Lifeline is a great addition to our network of datacentres, something we've been seeking in London for a while. This is a low risk move, earnings enhancing from day one and is a further step in the Redcentric growth strategy".