Harrogate’s Redcentric acquires London-based City Lifeline in £4.8m deal

Harrogate-based IT managed services provider Redcentric plc has completed the acquisition of City Lifeline Limited for a total consideration of £4.8m.

The transaction was paid in cash on completion and subject to adjustment for cash, debt and normal working capital.

City Lifeline owns and operates a data centre in London, and has been trading for over 20 years.

The company’s site in Tech City provides a secure, reliable location from which its customers operate business critical infrastructure. In the year to 31 December 2015, City Lifeline generated revenue of £3.5m, all recurring, and EBITDA of £600k.

The acquisition of City Lifeline represents another step in Redcentric’s growth strategy, providing a London data centre to complement its existing infrastructure of owned data centres in Harrogate, Reading and Cambridge together with its national fibre network.

As well as continuing to support City Lifeline’s existing customers, the London data centre will provide Redcentric with significant expansion capacity. The acquisition is expected to be immediately earnings enhancing.

Fraser Fisher, chief executive officer of Redcentric, commented: “City Lifeline is a great addition to our network of data centres, 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”.

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