Redcentric agrees to buy City Lifeline

UK IT services provider Redcentric has agreed to buy City Lifeline for £4.8m, the company announced on Friday.

Redcentric said it will pay for the London operator of data-centres in cash upon completion, subject to adjustment for cash, debt and normal working capital.

In the year to 31 December 2015, City Lifeline generated revenue of £3.5m and earnings before interest, tax, depreciation and amortisation of £0.6m.

"City Lifeline is a great addition to our network of data-centres, something we've been seeking in London for a while,” said Redcentric chief executive Fraser Fisher.

“This is a low risk move, earnings enhancing from day one and is a further step in the Redcentric growth strategy.”

Shares rose 1.24% to 183.75p at 1559 GMT.