Redcentric rescues Sungard assets following adminstration reports

MSP set to acquire three Sungard datacentres and AWS business following reports that the business went into administration earlier this year

Redcentric has announced its plans to acquire assets from Sungard Availability Services, after the UK arm of the business reportedly went into administration earlier this year.

The MSP says it has exchanged conditional contracts to acquire the operations and assets relating to three Sungard datacentres [DCs], with completion being conditional on certain revenue thresholds being met within 23 days based on customers agreeing new contract terms.

In the event the thresholds are not met in relation to each of the Sungard datacentres, the acquisition of the relevant datacentre will not complete, Redcentric claims.

The initial minimum consideration payable on completion of all three Sungard DCs is £11m, while the maximum is £22m.

Pursuant to the performance criteria, which expires 12 months following completion, there is a potential further sum of up to £7.625m payable.

Redcentric has meanwhile announced it has completed the acquisition of Sungard's consulting and AWS cloud services business for £4.2m, paid in cash.

Peter Brotherton, CEO of Redcentric, said: "Following completion of the capability acquisitions of Piksel Industry Solutions Ltd and 7 Elements Ltd in September 2021 and March 2022 respectively, this acquisition is the first scale acquisition completed by Redcentric, in line with its strategy.

"The Sungard DCs principally provide colocation and cloud services which complement the Redcentric offering perfectly. In addition, the Sungard DCs come with a superb blue chip customer base and should the acquisitions complete, they provide Redcentric with an exciting opportunity to accelerate its growth."

The deal also includes the provision of other colocation and network services from Sungard's UK operations.

Further details in relation to the acquisition, including financial information, will be provided on completion, Redcentric said.

Sungard's UK business entered into administration at the end of March, according to a report from Sky News, with Teneo Restructuring called in to attempt to secure its future.

Counting the NHS, Home Office and Npower among its customers, Sungard's EMEA head office is in Heathrow. The firm runs datacentre and workplace recovery centres across the UK and employs around 300 staff globally.