Managed service provider Redcentric has confirmed rumours that it is negotiating a potential sale of the company, with both private equity firm Macquarie - who bought KCOM last year - and Six Degrees in the frame.
£88m-turnover Redcentric saw sales shrink 6% year-on-year for the 12 months ended March 2020, although it reported at the time that the second half was better than the first half.
Redcentric claimed its fiscal 2020 put it in an "excellent" position to explore opportunities to increase value for its shareholders, according to a statement the AIM-listed firm put out in response to the speculation.
It added though, that it hadn't so far received any official offer from either of the two companies it confirmed it was talking to, and that it could well consider its own acquisitions to grow as an independent company instead.
The statement said: "The board of Redcentric notes the recent media speculation and confirms that it has initiated limited discussions with third parties with a view to seeking a potential purchaser or purchasers for the company. "Whilst a potential offer for the company may be the outcome of a formal sale process, the company is alternatively evaluating potential options in relation to organic growth and/or potential acquisitions that might be made by the company."
The firm also said it would be open to acquisition talks with other interested companies, and added it expected that any possible sale would be completed by the fourth quarter of this year.
Redcentric recently put to bed a long-running accounting scandal, by agreeing a settlement with the Financial Conduct Authority (FCA) to pay shareholders back £11.4m.
