Business
Acquisition of InTechnology, Placing, Re Admission
Acquisition of InTechnology, Placing, Re Admission.
About this update from Redcentric Plc
[{"type":"text","content":"\n \nRNS Number : 2183T Redcentric PLC 18 November 2013 \n \n\nRedcentric plc\n \n(\"Redcentric\" or \"the Company\")\nProposed Acquisition of InTechnology Managed Services Limited, Placing and Re Admission to AIM\nRedcentric plc (AIM:RCN.L), a leading end to end managed service provider delivering innovative technology to improve business productivity and efficiency, is pleased to announce it has agreed subject, inter alia, to Shareholder approval at the General Meeting, to acquire the entire issued share capital of InTechnology Managed Services Limited, the wholly owned subsidiary of InTechnology plc, for £65 million payable in cash at Completion. \n \nHighlights\n \n• Transformational acquisition that will double revenues and increase recurring revenues to more than 80 per cent. creating one of the largest independent managed services businesses in the UK\n• Redcentric and InTechnology are highly complementary businesses; Redcentric's network services, application, systems and security management capabilities are augmented by InTechnology's data centre estate, network and VOIP capacity\n• Significant proprietary data centre estate added with immediate capacity for growth; the total estate will contain 1255 racks\n• Placing heavily oversubscribed, several blue chip institutions added to share register\n• Acquisition expected to be accretive in first full year of ownership \n \n \nThe Consideration will be partly funded by way of a placing of 80,000,000 Placing Shares at a price of 80 pence per Placing Share with certain institutional investors to raise £64 million (before expenses), with the remainder being financed by an increase in the Company's existing banking facilities.\n \nIn view of the size of the Transaction, the Acquisition is classified as a reverse takeover under the AIM Rules and is therefore conditional, inter alia, on the approval of Shareholders. Such approval is being sought at the General Meeting to be held at the offices of DAC Beachcroft LLP, 100 Fetter Lane, London EC4A 1BN at 10.30 a.m. on 5 December 2013. The Company has received irrevocable commitments to vote in favour of the Resolutions in respect of beneficial holdings totalling 46.3 per cent. of...