Knight Corporate Finance, the specialist TMT corporate finance boutique, advised the board of RedstoneConnect plc (“Redstone”) on the sale of its Systems Integration and Managed Services business division to Excel I.T. Services Limited, a leading IT infrastructure company and support partner to global corporations, for a cash consideration of £21.6m.
Knight has a longstanding history with Redstone having advised it previously on its divestment of their legacy telecoms assets. Since then Redstone has evolved into an IT infrastructure and software provider, servicing the Smart Buildings and Commercial Spaces market.
This transaction will enable the business to reduce in size operationally and execute the board’s strategy of becoming a leading software and SaaS driven company, focused on the high growth smart buildings and co-working space technology markets. The market reacted extremely positively with the share price soaring over 30% on the day of the deal announcement.
Spencer Dredge, CFO at RedstoneConnect commented “We had worked with Knight previously on the disposal of our voice base in 2015. As a public company we had to run a very discrete process. Knight were able to provide an exceptional level of support that ensured we only needed to involve a very limited number of people in our own business on the transaction. Their understanding and experience in the managed services field was integral to ensuring that the deal successfully completed at the agreed value”.
Knight CF’s team are a blend of industry professionals alongside experienced deal execution, technical due diligence and accounting experts.
Paul Billingham, Director of Knight CF said “It was a pleasure to be involved in this transaction and we are delighted to see our work directly add value for shareholders with a substantial increase in share price. Like our recent transaction with Frontier, we have worked with the client previously which is testament to the work of the team and the successful outcomes delivered”.
Founded in 2008, Knight works with entrepreneurs to unlock and realise shareholder value in their business. It has completed over 90 transactions in the telecommunications, media and technology sectors from its Warrington and London offices.