Walker Morris advises on sale of InTechnology Managed Services for £65 millionPrint news article
A team of lawyers at Walker Morris led by Debbie Jackson and Oliver Duke have advised InTechnology PLC on the sale of its subsidiary InTechnology Managed Services Limited (IMS) to Redcentric plc for £65 million. Headquartered in Harrogate IMS provides managed network, data, hosting and voice telephony solutions designed to help its customers transition from on-premise IT solutions to Cloud-based Managed Services.
The sale is subject to the approval of Redcentric Plc’s shareholders. The acquisition will be partly funded by way of a placing of 80,000,000 Placing Shares at a price of 80 pence per share with certain institutional investors to raise £64 million and the remainder being financed by an increase in Redcentric’s existing banking facilities.
Debbie Jackson, Corporate Partner at Walker Morris said:
“We are delighted to have advised InTechnology PLC on its sale of IMS to Redcentric plc. The sale represents a great fit for both companies and is a positive one for the region, with the enlarged group being headquartered in Harrogate. The deal reinforces Walker Morris’ expertise in advising on large scale IT transactions. Having recently advised Servelec Group plc on its proposed IPO on the Main Market of the London Stock Exchange, it is also further demonstration of the increasing activity in capital market transactions.”
Tony Weaver, CEO of Redcentric said:
“This transformational acquisition will help the Company to achieve its aim of becoming the leading independent managed services business in the UK. 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. I am excited about the opportunities that exist and would like to thank both existing and new shareholders for their overwhelming support of the transaction.”
Peter Wilkinson, CEO of InTechnology said:
“I have felt for some time that InTechnology Managed Services needed to become a much bigger force in the UK market. This transaction instantly achieves that aim, the two companies combined creates a major force in the market which provides an unrivalled range of quality products and services to its large expanded customer base. I am very proud of the business we have built and would like to thank customers and staff alike for their support, which has contributed to its success, and look forward to an exciting future.”
Redcentric plc was advised by DAC Beachcroft LLP