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By | Kat Hall 2nd April 2015 13:28

Redcentric swoops on Calyx Managed Services in £12m breakup deal

Dismemberment set to continue

Managed services biz Redcentric has snapped up Calyx Managed Services (CMS) for £12m, as part of the company's break-up.

Last week, Calyx's maintenance and carrier services divisions were offloaded to Daisy Group and Chess, respectively, for a total of £5.5m.

The carve up follows the purchase of Calyx MS by MXC Capital, with Better Capital offloading the troubled operation for the sum of £9m in January.

According to TechMarketView, MXC Capital is also a substantial shareholder in Redcentric.

Kate Hanaghan, research director at TechMarketView, said: "Clearly the intention behind the original CMS purchase was to gain access to the managed services assets only (which generated £9.1m in revenue in full-year 2014) in order to bolster Redcentric’s capabilities."

She added: "A trading update issued earlier this month indicated that revenue and EBITDA (earnings before interest, taxes, depreciation, and amortization, a key business metric) for the full year would be “comfortably in line with market expectations."

"That followed an H1 performance that we described as being 'rather convincing', with revenue up 11 per cent organically to £46.8m and adjusted EBITDA up 32 per cent to £10.1m. The addition of CMS will enhance Redcentric’s delivery capabilities and open up opportunities for cross-selling services."

Manchester-headquartered Calyx had three basic operations: managed services, break fix and WAN reselling. It employs around 200 staff. ®

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