Managed services company Redcentric Solutions (RSL) is buying up three data centers after the UK branch of Sungard Availability Services went bankrupt in March.
Redcentric is buying data centers, colocation and network services, from Teneo Restructuring, who were appointed as administrator in March, when Sungard UK folded, blaming energy prices and landlords who refused to lower rents.
The deal is expected to close at the end of June, with the final price to be determined by the level of business at Sungard.
Redcentric said the cost of the deal will be between £11 million and £22 million ($14m to $28m) according to The Business Desk and Computer Weekly. The final price will depend on whether annualized revenue targets are met at Sungard over the next twelve months. Redcentric has already completed a £4.2 million ($5.3m) deal for Sungard's consulting and cloud services.
The Reg reports the facilities involved are Sungard's London Hounslow LTC Data Centre and Recovery Centre, along with the Woking TC3 facility, and the Elland TC4 Data Centre and Recovery Centre.
Teneo has already negotiated a sale of Sungard's UK customers to Daisy UK - the deal included customers served at 14 Sungard Workplace facilities.
“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," said Peter Brotherton, chief executive of Redcentric.
In fact, Redcentric bought London data center City Lifeline for £4.8 million ($6m) back in 2016.
“The Sungard DCs principally provide colocation and cloud services which complement the Redcentric offering perfectly," said Brotherton. "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 already-completed £4.2 million deal for consulting and cloud, includes Sungard UK's AWS and Consulting Divisions.
“The Joint Administrators are delighted to have reached this agreement,” said Benjamin Dymant, joint administrator. “The anticipated transaction close will be an excellent outcome for all stakeholders, given the circumstances. Not only will this protect a significant number of jobs, it also provides customers with the opportunity to guarantee continued provision of service, following a nine-week trading period, in which the administrators have ensured that services have continued without interruption.