HotViews Archive

Skip Navigation Links.
Collapse 2017 (31)2017 (31)
Collapse August (31)August (31)
Infosys CEO exit – right answer, wrong reason
18 Aug 2017
Advanced secures significant DWP contracts
18 Aug 2017
Partners Group: what next for Civica?
18 Aug 2017
Cisco shows transition signs in FY17
18 Aug 2017
Infosys in turmoil as CEO resigns
18 Aug 2017
Good and bad news in the A Level results
18 Aug 2017
Atos extends North Central London digital health footprint
17 Aug 2017
Idox strengthens its position in electoral software and services
17 Aug 2017
Google buys AIMatter
17 Aug 2017
The power of broker reports...
17 Aug 2017
An Evening with TechMarketView 2017 - book now!
17 Aug 2017
Confident ai Corporation offers a new approach to fraud
16 Aug 2017
Microsoft 'Cycles' into Cloud HPC acquisition
16 Aug 2017
Bolton chooses Allscripts for integrated health record
16 Aug 2017
School Lettings Solutions raises funds to drive expansion
16 Aug 2017
CloudBuy makes modest progress in H1
16 Aug 2017
RBS swings axe on London IT staff
16 Aug 2017
Trade Finance application gives CGI a blockchain shop window
16 Aug 2017
Angry Birds fly
15 Aug 2017
*NEW RESEARCH* UK BPS Supplier Ranking 2017
15 Aug 2017
Pulsant buys LayerV to deepen cloud integration
15 Aug 2017
SharpCloud collaborates with Babcock International
15 Aug 2017
European Investment Fund turns off tap for UK tech start-ups
15 Aug 2017
HPE PointNext - New Thinking Reveals New Possibilities
15 Aug 2017
Mixed start to Sonata’s year
14 Aug 2017
Telit – the plot thickens
14 Aug 2017
New funding for CSI reflects strength of the mid-market
14 Aug 2017
Arcontech looking for growth
14 Aug 2017
Pot of gold at the end of Glint’s rainbow
14 Aug 2017
Join us for the TechMarketView Evening 2017
13 Aug 2017
The gender debate
13 Aug 2017

UKHotViews©

 

Friday 17 February 2017

*NEW RESEARCH* Cloudreach brings in Blackstone to accelerate growth

cloudreachBlackstone is to become a majority shareholder in Cloudreach, the cloud software and migration company headquartered in the UK. Terms have not been disclosed.

Cloudreach uses the tag line “Not if. When.”, which we think applies nicely to its position as an acquisition target. We have no doubt the company has been approached many times by interested trade buyers, but our sense is that CEO Pontus Noren was not about to sell out to another player.

With the Blackstone backing, Cloudreach intends to accelerate its growth. Indeed, the company acknowledges that “to play a significant role in this next stage of market maturity requires significant financial resources”.

In FY15 (the latest set of publicly available data), revenue exploded from £8.4m in the previous year to £24.5m. This came on the back of an investment made by a “third party” in May 2014 ($3.5m of convertible loans). It’s not clear who that investor was, but the injection of cash looks to have been critical.

Cloudreach’s competitive landscape is interesting. There are of course the large SIs that partner with AWS, Azure and Google, but also various other smaller players. Indeed, KCOM is often mentioned in the same breath as Cloudreach as the ‘front runners’ of AWS migration in the UK. But even these two combined have revenue that we estimate is way under £50m - a drop in the ocean in the grand scheme of IT spend in the UK. There is not only a lack of acquisition targets with significant revenue in the UK, but also a lack of professionals with the appropriate cloud/digital skills. Indeed, this is something AWS has looked to address via its re:Start programme, see:  AWS re:Start programme: A force for good for UK digital skills?

Read more analysis on the Cloudreach acquisition, here: Cloudreach acquisition reflects important market changes.

Posted by Kate Hanaghan at '09:56' - Tagged: acquisition   cloud   AWS   cloudmigration  

Add a comment Add a comment Twitter   Facebook   LinkedIn   Email article link




© TechMarketView LLP 2007-2017: Unauthorised reproduction prohibited see full Terms and Conditions.