Private equity firms have shown a growing interest in the cloud services market as we reported a slew of deals in the sector since the beginning of 2023.
With the acceleration in digital transformation, there will be increased investment opportunities in the technology sector, Stephen Shanley, partner and head of tech growth in Europe at KKR, told PE Hub this week.
“Specifically, companies are increasing their reliance on technology while at the same time customers are shifting their daily activities to the digital world,” Shanley said. “This has created an environment that is ripe for investment, especially around helping businesses operate and serve their customers better and more securely.”
KKR is a New York-based global investment firm.
Here are 11 deals in the cloud services sector that caught our attention (in reverse chronological order):
1. Kingland Capital backs MBO of Dynamic Networks
Kingland Capital made its debut investment this week by backing the management buyout of Dynamic Networks, a managed service provider, to support its organic and acquisitive expansion.
Leeds, England-based Dynamic Networks provides cloud-led managed IT support, digital transformation services, cyber security and connectivity to the SME market. It has delivered organic growth with revenue CAGR of over 40 percent between 2021-2023.
2. Agilitas-backed Aeven agrees to buy Sentia
Sentia designs, develops and manages critical application landscapes for the cloud.
3. Keensight-backed Sogelink scoops up Regeldienst
Lyon, France-based Sogelink is a pure software, cloud and mobile service provider for the construction sector.
4. Keensight Capital to invest in Aconso
Keensight will partner with Aconso’s founders, who will retain a substantial stake and continue to lead the company.
5. LDC to invest in DSP
YFM Equity Partners will exit DSP as part of the transaction, having invested in 2018.
DSP has grown revenues by 500 percent to £30 million ($36 million; €34 million) in its current financial year.
6. Hg-backed Visma signs pact to buy ACOS
Bergen, Norway-based ACOS will operate as an independent company under the same management.
7. Keensight-backed Quanos bags Plusmeta
Keensight acquired Quanos from IK Partners in February.
8. Thompson Street-backed BCM One bags Pure IP
BCM One, a portfolio company of Thompson Street Capital Partners (TSCP), acquired Pure IP, a global cloud-based voice service provider, in late June.
London-based Pure IP’s addition will expand BCM One’s NextGen Communications portfolio to serve global businesses with enterprise-grade cloud-based voice for Microsoft Teams, Cisco Webex and Zoom, according to a release.
9. Aurelius Growth-backed Connexta bags Esko-systems
Kötz, Bavaria-based Esko is Connexta’s seventh acquisition.
10. LDC-backed Onecom Group snaps up On-Site Connect
On-Site is a cloud technologies provider headquartered in Portsmouth.
11. Keensight’s Inherent buys Equadex
Equadex, headquartered in Toulouse, offers IT support at all levels to over 500 small and medium-sized businesses.
PE Hub Europe expects to see more deals in the cloud services sector in the coming months.