Advised Cloudreach, a leading global public cloud enabler, on the sale of a majority share to Blackstone
Feb 2017
majority share acquired by
  • Sector: Cloud Managed Services
  • Deal Type: Strategic Deals; Founder-led Businesses; Private Equity Deals
  • Engagement type: Sellside
  • Size: <$200m

Arma Partners is pleased to announce that it has acted as exclusive financial advisor to Cloudreach on the sale of a majority share to Blackstone.

Cloudreach is a renowned cloud-native global cloud enabler which has empowered some of the largest and best known enterprises in the world to realise the benefits of hyperscale public cloud. The company is an important partner for AWS, Microsoft and Salesforce and offers intelligent and innovative cloud adoption by providing capabilities to enable, integrate and operate cloud platforms based on these infrastructures.

This is one of the largest transactions to have taken place in this important and rapidly growing segment of the IaaS market. Arma Partners has a strong focus on hyperscale public cloud enablers, building on its market leading expertise in the managed hosting and cloud infrastructure sectors.

-Founded in 2009, Cloudreach is a hyper-growth public cloud enabler, that focuses on enterprise customers with over £1bn in revenue

-Offers a vendor-agnostic cloud management platform, cloud enablement tools and cloud operation services supported by various proprietary software solutions

-Employs 300 people in the UK, the US, Canada, Germany, the Netherlands and France

-Carries advanced partner accreditations with AWS, Microsoft, Google and Salesforce and has over 400 technology certifications across its employee base

-Blackstone is a publicly-listed investment firm with $360bn AUM

-The Tactical Opportunities fund, that led the investment, focuses on prospects for time-sensitive, high-growth investments

-Dave Johnson, Senior Advisor to Blackstone and new Chairman of Cloudreach, brings extensive industry knowledge to the company, having spent over 30 years in corporate development and strategy roles at IBM and Dell before joining Blackstone

-Participation in the rapid growth in public cloud enablement by acquiring Cloudreach, one of the leaders in the space

-Enabling Cloudreach’s ambition to become a $1bn revenue company by providing capital to add software development capabilities, extend its geographic presence, develop its managed services and cloud operation capabilities and to facilitate bolt-on acquisitions

-Worked with founders to identify their objectives

-Educated the market on Cloudreach’s business model and identified the most promising and knowledgeable partners

-Actively supported management in enhancing its internal start-up-like structures to facilitate due diligence

-Helped drive the process through multiple iterations to a successful completion