Remember me:
Skip Navigation LinksEI article
Redstone sells £150m BSF contract for just £4.2m

ICT firm Redstone has disbanded the unit responsible for its Building Schools for the Future work, and sold its contract in Birmingham for less than 3% of its value.

The company had harboured ambitions of taking a 10% share in the BSF market. And in February last year it won a 15-year deal to deliver computer services to Birmingham schools. The contract was thought to be worth £150 million.

But the programme was cancelled last July. And Redstone has struggled through the recession, with revenues dropping by 20% in the year to March.

Now the company has sold the Birmingham contract to lead contractor Bovis Lend Lease for just £4.2 million.

Following this decision Redstone confirmed that its I4E division, which had been set up to manage the contract in Birmingham and seek further BSF work, would now be disbanded.

Tony Weaver, Redstone’s chief executive, said: “We are pleased to have completed the first part of our strategy of refocusing Redstone’s operating activities within the sphere of its core competencies.”


Posted on: 05/10/2010

Latest news

Digital learning company Quizlet has raised $12 million (£8 million) in a Series A funding round led by Union Square Ventures and Costanoa Venture Capital.
Property estate agent Knight Frank has put two educational premises on the market in London and Buckinghamshire.
One of the UK’s largest nursery chains, Bertram, is up for sale, EducationInvestor understands.
Data analytics firm Arbor Education has raised £1 million in convertible notes from Isfield Family Office and Nesta Impact Investments.
Dow Jones and Pearson have announced plans to divest their stakes in Russian business newspaper Vedomosti to the Kudryavtsev family.
Recruitment and training firm Penna Consulting has announced a profit increase of 34% for the six months ended 30 September.
US for-profit college Education Management has been asked to pay $95.5 million to settle claims it unlawfully recruited students.
Media and tech deals in the US K-12 space increased by 67% from the second to the third quarters of 2015, a report by investment bank Berkery Noyes has claimed.
Pearson has appointed Lincoln Wallen as an independent non-executive director, effective from 1 January 2016.
English language learning company Karadi Path has raised $2.3 million (£1.5 million) in a series A funding round led by Pearson Affordable Learning Fund, alongside venture capital firm Aavishkaar.

EducationInvestor Awards Winners

Features and analysis

The City & Guilds group has launched a new venture capital fund for ed tech. Director John Yates tells us more.

Pobble’s story sharing platform is taking off in schools. Co-founder Jon Smith tells us more.

WISE’s ed tech accelerator is putting outcomes on a par with profit, says Adriana Balducci.

Language learning apps Busuu, DuoLingo and Babbel all went on a fundraising spree this summer. But can these firms turn demand into profit, asks Kirsten Noben.

A recent report from the OECD questioned the value of classroom technology. But was it fair, asks Caroline Wright of the British Educational Suppliers Association.

As the new European CEO of Keypath, Rajay Naik hopes to make online degrees mainstream in the UK. But can he convince our cautious universities to go online?

The Doha education sector offers significant opportunities to school developers and operators, says Mansoor Ahmed of Colliers International.

The Spanish education sector has been battered by the financial crisis. But it may now be turning a corner, finds Kirsten Noben