UKCloud acquired by strategic investor Hadston 2
London – 21st January 2022 – UKCloud, the multi-cloud experts dedicated to making transformation happen across UK public sector, has today announced its acquisition by Hadston 2 Limited, an investment vehicle led by well-known entrepreneur and UKCloud Chairman, Jeff Thomas, and backed by existing institutional investors including BGF Group plc and Digital Alpha.
The acquisition, which is subject to the National Security Investment Act, combines UKCloud's significant digital footprint and leading sovereign offering – including multiple cloud technologies spanning six UK data centres and supporting multiple security classification levels – with Hadston 2's ambitious strategic vision to build a group of companies leading innovation in the ethical and sustainable use of data and digital infrastructure.
In a clear vote of confidence in the UK's world-leading technology capabilities, the new investment will facilitate the expansion of UKCloud's product portfolio via soon to be announced Strategic Partnerships, the accelerated development of its platform, and provide sustainable high skill, high wage jobs to the benefit of the UK's economy, society and environment.
Jeff Thomas, Chairman, Hadston 2 Limited, said:
"UKCloud has long been a market leader in the delivery of sovereign, secure cloud technologies to public sector organisations spanning government, health and defence – and today marks the beginning of a new, ambitious strategic vision.
The funding provides a strong foundation on which to assemble a portfolio of innovative businesses promoting the ethical and sustainable use of data to drive positive change in our communities and economy. Organisations and governments increasingly share a belief in these crucial outcomes, and I am deeply excited to unveil more information about our growth plans and new direction in the very near future."
Simon Hansford, CEO, UKCloud, commented:
"As a Strategic Cloud Provider to government, UKCloud has powered digital transformation across the UK public sector for over a decade. This investment is a significant milestone for UKCloud, funding the business through to profitability and accelerating the development of industry leading capabilities to help organisations of all sizes embrace the obvious benefits of cloud and digital transformation."
The funding is set to accelerate the growth of the UKCloudX and UKCloud Health brands, expanding the company's expertise and capabilities in the defence and healthcare sectors. As part of this growth, significant investment will be made in people – a recruitment drive has begun to fill a range of new positions and further bolster the team's experience and resources will be dedicated to new training initiatives.
Hadston 2's new plan for and positioning of UKCloud as part of a portfolio of businesses rooted in the value and importance of data also paves the way for potential acquisitions and geographic expansion to assist nations which value and require sovereign cloud technologies.
Vasa Babic, Partner, Digital Alpha said:
"We are pleased to support Hadston 2 in its acquisition of UKCloud and to support Jeff Thomas's strategic vision for growing the business to meet customer demand for secure, sovereign data management and sustainable digital transformation; themes which align well with our views of market opportunities and priorities."
James Austin, Director, BGF said:
"With this investment, UKCloud is well positioned to cement its position as a leading provider of critical cloud infrastructure to public sector organisations and grow its roster of quality clients. BGF first invested in UKCloud in 2014 and we are looking forward to working with the company's experienced management team as they guide digital transformation through a unique multi-cloud offering."
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About Hadston 2 Limited
Hadston 2 is a newly created special purpose investment company controlled by Jeff Thomas. Its mission is to create a portfolio of enterprises centred around the sustainable and ethical use of data and digital infrastructure, through acquisitions, joint ventures and strategic partnerships.
About BGF Group Plc
BGF was set up in 2011 and has invested over £2.5bn in more than 400 companies, making it the most active growth capital investor in the UK. BGF is a minority, non-controlling equity partner with a patient outlook on investments, based on shared long-term goals with the management teams it backs. BGF invests in growing businesses in the UK and Ireland through its network of 16 offices. In 2018, Canada launched its equivalent – the Canadian Business Growth Fund – and in 2020, Australia did the same, both based on BGF's approach and funding model.
About Digital Alpha
Digital Alpha Advisors, LLC is an investment firm focused on digital infrastructure and services required by the digital economy, with a strategic collaboration agreement with Cisco Systems, Inc. As part of this agreement, Digital Alpha has preferred access to Cisco's pipeline of commercial opportunities requiring equity financing. Digital Alpha believes that it is the first firm focused on making private equity investments in the significant growth opportunities required to underpin the Digital Economy, including smart cities, next generation broadband networks, and enterprise data management and communication solutions.
UKCloud is the trusted multi-cloud provider to the UK public sector and provides true multi-cloud solutions that enable public sector organisations to achieve better outcomes.
· Doing the right thing. By delivering better services to citizens and better value for taxpayers, by reducing the time, costs, and risks of digital transformation
· Accelerating digitalisation with local multi-cloud experts. Our award-winning customer support is here to help our customers throughout their journey with us.
· Harnessing multiple cloud services. To help organisations use multi-cloud to address existing and legacy IT as well as cloud native applications.
· Uncompromising safety and integrity. As we believe the UKs public services are a national asset that needs protecting and nurturing.
Additional information about UKCloud can be found at www.ukcloud.com or by following us on Twitter at @ukcloudltd, while information about UKCloud Health can be found at www.ukcloudhealth.com or on Twitter at @ukcloudhealth and information about UKCloudX can be found at www.ukcloudX.com or on Twitter at @ukcloudx