Excel I.T. Ltd announces acquisition of Redstone Converged Solutions Ltd and Commensus Ltd from RedstoneConnect plc

London, UK, 29th May 2018 — Excel I.T. Ltd has announced an agreement to acquire Commensus Limited and Comunica Holdings Limited – the sole shareholder in Redstone Converged Solutions Limited – from RedstoneConnect plc. The acquisition is subject to RedstoneConnect shareholder approval.

The acquisition will create the UK’s largest pure play network, connectivity and IT infrastructure company, with expertise throughout the data centre, office and smart building environments.

The agreement is for Excel I.T. to acquire the assets, people and customer contracts of the Redstone Converged Solutions and Commensus operations. RedstoneConnect plc will retain ownership of its Connect and OneSpace software operations.

The merged business will operate under a new ExcelRedstone brand.

Excel I.T. CEO Barry Horgan said: “Both Excel I.T. and Redstone Converged Solutions are well established as leading providers of IT infrastructure, managed services and smart building technology to a large and growing base of enterprise and mid-market clients in the UK and abroad.

“By combining these already successful business operations we are creating a unique new force in the data centre and intelligent infrastructure markets, with the scale, quality and breadth of competencies needed to meet clients’ increasingly complex and critical IT infrastructure requirements.

“ExcelRedstone will have an enviable client list from day one, including many of the world’s leading financial institutions, multi-national corporations and largest hyperscale data centre providers.

“Responding to the increasingly international outlook of these clients, we are creating not just a new market-leader for the UK market but a platform from which we can build the largest IT infrastructure specialist across the EMEA region, with the capability to follow customers globally.”

About Excel I.T.

Excel I.T. was founded in 1989 and has grown to become a trusted infrastructure, network and connectivity partner to some of the world’s leading enterprises. From offices in London, Grays, Edinburgh, Birmingham and Frankfurt the company works with clients across Europe, the Middle East, Africa and beyond, delivering a comprehensive portfolio of services with capability across all elements of the datacentre and the office / campus.

Barry Horgan added: “Research indicates that the addressable data centre market is likely to grow at up to 12% per annum over the next three years, and the campus market at up to 5% per annum. Growth is being created not only by project volumes but by significant value drivers: increased capacity and performance requirements; the growth in smart infrastructure and technologies; and growing project complexity.

“With clear alignment between Excel and Redstone’s IT infrastructure and smart building operations, this acquisition creates the scale we believe we need to respond to these growing requirements. There are also plenty of complementary specialisms across the two businesses, ensuring the deal will create addition value through synergies in shared best practice and technologies.”

About Redstone Converged Solutions and Commensus

Established more than 30 years ago, Redstone Converged Solutions is a leading specialist in IT infrastructure, network design, IIM/DCIM, electronic security, DAS, smart building consultancy and support services. Addressing mid-market and enterprise client requirements, Redstone delivers on its heritage and experience of delivering IT infrastructure and support services to customers in some of the UK’s leading buildings and offices. The company is UK based but undertakes projects globally.

Built originally in 2008 as part of the first vCloud ‘infrastructure as a service’, Commensus has been at the cutting edge of managed hosting from the start. Now in its 4th generation, the Commensus platform provides the fastest technically available solution for server power, storage data access and network connectivity, supporting customer systems and staff in Europe and around the world.

Brendan Loughrey, Managing Director of Redstone Converged Solutions, said: “We are excited to be joining with Excel I.T. in the creation of this powerful new force in the IT infrastructure and smart buildings market.

“This deal is a milestone for our business, and presents significant growth opportunities across our operation. As part of the market’s largest pure play IT infrastructure and managed services business we will benefit from sustained investment, support and focus on these core activities, and from a scale, breadth of capability and international dimension that few – if any – can match.”

About RedstoneConnect plc

RedstoneConnect (AIM: REDS) is a leading provider of technology and services for smart buildings. This deal will see RedstoneConnect plc retain ownership of Connect IB, to become a pure-play software business focused on OneSpace, the company’s smart buildings and occupancy management software solution.

Mark Braund, RedstoneConnect plc CEO, said:  “The proposed acquisition of the systems integration and managed services divisions by Excel I.T. represents an exciting development in the evolution of our respective businesses.

“The newly combined business will represent a compelling proposition in the data centre and intelligent infrastructure markets, benefiting both customers and employees as the opportunity for business improvement through the application of technology continues to grow unabated.

“The transaction also allows RedstoneConnect to focus on the development of our rapidly growing smart building software business, with a particular focus on OneSpace, our occupancy management software solution.

“OneSpace is entirely complimentary to the enlarged IT infrastructure proposition of the newly combined business.  Employee mobility and agile working is driving market demand for these solutions as commercial real estate becomes more of a user-experience business.

“To help customers take advantage of this we are delighted to announce a formal partnership between the two businesses, in which we will work together to provide OneSpace and smart building software solutions to their clients.”

ENDS

Media Contacts

Excel I.T. Ltd

For more information, please contact Leader Communications in the first instance:

RedstoneConnect Plc.

Mark Braund via Vigo Communications, 0207 830 9700