October 23, 2025
UK managed service provider (MSP) Redcentric plc has completed the divestiture of its entire data center business to Stellanor Datacenters Group Limited, a newly formed operator backed by DWS Group, in a deal valued at up to £127 million.
The all-cash transaction, announced this week, sees Stellanor acquire Redcentric Data Centres Limited (RDC). The final enterprise value is contingent upon certain agreed-upon conditions. This move follows Redcentric's initial announcement in August that it was seeking a buyer for the unit.
Redcentric's Chief Executive Officer, Michelle Senecal De Fonseca, stated that the disposal marks a strategic pivot for the company. "We are pleased to announce today the disposal of RDC to Stellanor, which is a positive outcome for Redcentric and our shareholders," she said. "The completion of the DC sale will allow management to focus squarely on the MSP business, which has a very strong brand and market position in both the public and private sectors."
De Fonseca expressed confidence in the company's refined direction, adding, "I am excited at the prospect of driving revenue and margin expansion in the years ahead, which I am confident we will deliver strong returns and shareholder value."
The acquired portfolio comprises eight data centers across England with a combined capacity of 41MW. The facilities are located in London (Shoreditch and Hounslow), Woking, Gatwick, Byfleet, Reading, Cambridge, and Elland in West Yorkshire. Redcentric had built this portfolio through acquisitions, including the purchase of colocation provider 4D Data Centre and three former Sungard AS facilities in 2022.
Stellanor's Transformative Entry into the UK Market
For the buyer, Stellanor, this acquisition represents a rapid and significant expansion. The company was launched just last month by German asset manager DWS Group to establish a foothold in the UK data center market. Stellanor is led by CEO Stephen Scott, an industry veteran with experience at firms including Global Switch and Sentrum.
Aparna Narain, a partner at DWS Group - Infrastructure Investments, described the deal as "a transformative step." She highlighted the value of RDC's "high-quality, strategically located assets with 23MW of secured grid capacity and a blue-chip customer base." Narain further noted that "RDC's well-invested facilities and proven operational excellence align seamlessly with our vision to deliver scalable, secure data center solutions amid rising demand for edge computing in the UK."
Stellanor's initial assets, used to seed the company's launch, were two London data centers recently acquired from Colt Technology Services. These include the London East facility (8,000 sqm, 4MW) and the London North site (12,210 sqm, 8MW with potential to expand to 20MW).
The company has indicated its growth strategy will involve a "combination of further M&A and greenfield projects." Following the acquisition, CEO Scott remarked last month that Stellanor's priority is to "keep customers at the heart of everything we do as we expand the business."
DWS Group, which was spun off from Deutsche Bank in 2018, also holds investments in other European data center operators, including atNorth and Mediterra.
SOURCE DCD
