Redcentric Divests Data Center Portfolio in £127 Million Deal with DWS-Backed Stellanor

Major Data Center Portfolio Transaction

UK managed services provider Redcentric has reportedly agreed to sell its entire data center business to Stellanor Datacenters Group Limited in a deal valued at up to £127 million ($169.5 million), according to company announcements. Sources indicate the all-cash transaction represents a significant strategic shift for both companies involved in the UK data center market.

Major Data Center Portfolio Transaction
Strategic Rationale for Redcentric
Stellanor’s Expanding Footprint
Portfolio Details and Market Position
Broader Market Context

Strategic Rationale for Redcentric

Redcentric CEO Michelle Senecal De Fonseca stated that the disposal “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.” According to her comments, this strategic move is expected to drive revenue and margin expansion while delivering strong returns and shareholder value in the coming years.

Analysts suggest this divestiture follows Redcentric’s August announcement of its intention to find a buyer for its data center assets. The company had built its portfolio through several acquisitions, including UK colocation provider 4D Data Centre and three Sungard data centers in 2022, which were subsequently rebranded under the Redcentric Data Centres name.

Stellanor’s Expanding Footprint

The report states that Stellanor, launched just last month and backed by a fund managed by German asset management firm DWS Group, is making its second major acquisition following its recent purchase of two data centers from Colt Technology Services. DWS, which previously operated as Deutsche Asset Management and was part of Deutsche Bank until 2018, currently retains majority ownership by Deutsche Bank according to financial records.

Aparna Narain, partner at DWS Group – Infrastructure Investments, described the acquisition as “a transformative step in expanding our UK footprint with high-quality, strategically located assets with 23MW of secured grid capacity and a blue-chip customer base.” The analysis suggests this aligns with DWS’s vision to deliver scalable, secure data center solutions amid rising demand for edge computing in the UK.

Portfolio Details and Market Position

Redcentric’s data center portfolio reportedly includes eight facilities with 41MW of capacity across locations in London (Shoreditch and Hounslow), Woking, Gatwick, Byfleet, Reading, Cambridge, and Elland in West Yorkshire. Industry sources indicate this infrastructure was developed through multiple acquisitions over recent years, including the £4.8 million purchase of City Lifeline data center in London back in 2016.

Stellanor, led by CEO Stephen Scott who has held roles at Global Switch, Verge Digital Infrastructure, and other technology firms, currently operates two London facilities acquired from Colt. The company has stated it aims to grow further through “a combination of further M&A and greenfield projects,” suggesting additional market consolidation may be forthcoming.

Broader Market Context

Industry analysts suggest this transaction reflects ongoing consolidation in the European data center market as investment firms seek exposure to digital infrastructure assets. DWS reportedly also owns European operator atNorth, with data centers across the Netherlands, Switzerland, and Germany, and has invested in Mediterra, a data center firm focused on southern Europe that launched last year.

The report indicates that the UK data center market continues to attract significant investment due to growing demand for cloud services, edge computing, and digital transformation initiatives across both public and private sectors. This transaction represents one of the larger data center deals in the UK market this year according to industry observers.