11 private equity deals in the cloud

Keensight Capital, LDC and Agilitas Private Equity are among the private equity firms investing in the cloud services sector.

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

Aeven, a portfolio company of Agilitas Private Equity, agreed to acquire Sentia, a Danish cloud service provider, in early October.

Sentia designs, develops and manages critical application landscapes for the cloud.

3. Keensight-backed Sogelink scoops up Regeldienst

Keensight Capital’s portfolio company Sogelink acquired Regeldienst, a Dutch software company.

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 Capital said in late September that it will invest in Aconso, a cloud-based HR document management software provider, to expand its international footprint.

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

In late September, LDC announced it will invest in DSP, a London-based database, cloud and applications managed service provider.

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

Hg portfolio company Visma agreed to acquire ACOS, a cloud software service provider for document processing and archive systems, CMS systems and workflow management, in mid-August.

Bergen, Norway-based ACOS will operate as an independent company under the same management.

7. Keensight-backed Quanos bags Plusmeta

Keensight Capital’s portfolio company Quanos Group acquired Plusmeta, an AI-driven, cloud-based software provider, in early July.

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

Connexta, backed by Aurelius Growth Investments, acquired esko-systems, an IT security support provider to medium-sized and large companies, in early May.

Kötz, Bavaria-based Esko is Connexta’s seventh acquisition.

10. LDC-backed Onecom Group snaps up On-Site Connect

In mid-February, LDC-backed Onecom Group acquired On-Site Connect’s customer base and operating assets.

On-Site is a cloud technologies provider headquartered in Portsmouth.

11. Keensight’s Inherent buys Equadex

Keensight Capital portfolio company Inherent Group acquired Equadex, a SME data server and cloud services firm in mid-January.

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.