RedCortex

We’re pleased to have acted as lead adviser to the shareholders of RedCortex Limited (RedCortex), a leading digital and cloud-based transformation consultancy, on its sale to AIM-listed, TPXimpact Holdings PLC (TPXimpact). The deal values RedCortex at a total of £13.4 million with the business having generated £4.4 million turnover and £0.8million EBITDA in its most recent set of financial results.

RedCortex, established in 2016 and based in Cardiff, specialises in providing technology services to the Welsh public sector, particularly focused on healthcare and transport alongside government and local authority projects. Its clients include NHS Wales, the Welsh Government, Transport for Wales and a number of local authorities as well as other public sector institutions outside of Wales. RedCortex is a Microsoft Gold Partner with deep knowledge and skills right across the Microsoft stack.

TPXimpact is a digitally native technology services group focused on sustainable digital transformation and positive, purposeful organisation change. The group is recognised as a leading alternative digital transformation provider to the UK public services sector, with c.75% of its client base representing the public sector and c.25% representing the commercial sector.

Our Corporate Finance team led by Consultant Nigel Griffiths, Director Thomas Edwards and supported by Executive Jade Burgess managed interactions with all the potential acquirers, negotiated terms and steered the process through to a successful completion. TPXimpact emerged as the standout strategic acquirer for the business and provides a home for the RedCortex business to thrive.

The acquisition of RedCortex will strengthen TPXimpact’s foothold in Wales and expands on the company’s strategy of building regional hubs across the UK.

Thomas Edwards, Director at FRP Corporate Finance, added: “This is another great example of an outstanding result in the Welsh technology sector. There was significant interest in the business that represented the reputation of RedCortex in the marketplace. This is a strategic acquisition for TPXimpact and will only further enhance the quality of the service offering to its clients.”

Martin Britton and Martyn Matthews, Founders of RedCortex, said: “The Cardiff team really helped us through this process, providing invaluable advice at every step and helping make sure we achieved a good valuation for RedCortex. The team made sure the transaction ran smoothly and kept us informed at every stage.”

Legal advice to the shareholders was provided by Tom Kelleher and Jordan Thomas at Capital Law.