LONDON, UK: Redcentric plc, a leading UK IT managed services provider, has acquired Piksel Industry Solutions Limited in a $13 million deal.
Piksel Industry Solutions is a provider of IT modernisation and digital transformation services, focussing on public cloud. It also delivers security and IT managed services, and has a strong application development and DevOps capability.
Based in York and London, Piksel IS has 93 employees, the majority of whom are highly skilled technical individuals. Its managed IT services are provided across a broad range of industry verticals, with a particular focus on Amazon Web Services and Microsoft Azure.
This strategically important acquisition delivers on the Board’s stated strategy to assist growth through acquisitions. The Acquisition gives Redcentric leading-edge skills and capabilities in public cloud and security to enable it to immediately provide additional solutions to an enlarged customer base.
The Acquisition is expected to be immediately earnings enhancing and the Board believes there is scope to deliver attractive revenue and profit growth over the medium term.
The consideration for the Acquisition is US$13.0m (c.£9.5m) payable in cash of which US$12.0m (c£8.8m) is payable immediately with US$1.0m (c.£0.7m) being held in escrow for a period of 12 months.
The consideration is payable out of the Redcentric’s existing cash resources. The Acquisition is effective from 1 August 2021 and, on a proforma basis, the acquired business is expected to generate annualised revenues of £10m and EBITDA of £0.4m. £0.4m of synergies will be realised within the first three months of ownership, with at least a further £0.7m of synergies expected to be realised over the following 12 months.
As at 31 July 2021, Piksel IS had net assets of £2.2m including an assumed intra-group debtor of £3.1m which will be written off immediately post the acquisition and cash on the balance sheet of £0.3m.
Peter Brotherton, Chief Executive Officer, Redcentric, commented: “This is an extremely exciting strategic acquisition for Redcentric and combines the secure, asset light, digital transformation capabilities of Piksel IS with the managed infrastructure, unified communications and connectivity solutions of Redcentric. We are delighted that the combined portfolio will accelerate the Redcentric group’s ability to deliver industry leading, transformative solutions to our customers and expands our capabilities in hyperscale public cloud and security.”
Paul Mardling, Managing Director, Piksel Industry Solutions, commented: “We are looking forward to being part of Redcentric. The combined expertise of Redcentric and Piksel IS will bring benefits to both our customers and people. We are now part of a successful larger group and that will help us capitalise on the growing and substantial market for advanced cloud services, networks and cyber security.”
Redcentric PLC share price
136.75 GBX+2.25 (1.67%)today
29 Sep, 4:30 pm GMT+1 ·Disclaimer
Leave a Reply