The Cloud People acquires Swedish consultancy firm and prepares for Northern European expansion
With the backing of private equity investor Longship, The Cloud People is poised for strong growth, both organically and through acquisitions. Swedish Verano SpringStep is the first company to be bought with funding from Longship.
«We now have the funds to implement our major growth plans, both organically and through acquisitions. Over the next three to four years, our goal is to become Northern Europe’s leading partner for Google Cloud and ServiceNow,» says Bjørn Jarl, Group CEO and Chairman of the Board at The Cloud People (TCP).
Bjørn Jarl and his partners now have the Norwegian private equity investor Longship as a financial partner. Longship Fund II, with NOK 1.7 billion in investment capital, is investing a three-digit million amount in TCP. The investment will facilitate TCP’s growth plans and expansion. The goal is to conquer the Northern European market for services related to ServiceNow and the Google Cloud Platform.
«We are impressed by The Cloud People’s ambitious growth strategy, forward-looking management team and a top line that is expected to double for the second year in a row. The company is uniquely positioned as a specialist in two of the fastest growing cloud platforms in the world. In addition, they have differentiated themselves from the competition in terms of how IT services can be delivered,» says Longship Partner Espen Stenumgård, who is responsible for the investment in TCP.
Stenumgård is referring to Smart Resourcing, the concept that makes it easier than ever to put together the perfect team for the tasks you need to complete. The Cloudia platform brings Smart Resourcing to life. With Cloudia, companies can search for and find consultants, allowing them to put together the best possible teams for the task at hand.
The Norwegian Financial Daily has written about the investment and acquisition. Read about the deal here.
Strengthened position on ServiceNow
To equip themselves for optimal further growth, TCP has been restructured into a group, with The Cloud People Group as the parent company. At the same time, the injection of capital has already had an effect:
- The Cloud People acquired the Swedish consultancy firm Verano SpringStep
- Strategic collaboration with the English ServiceNow consultancy firm whyaye!
Verano SpringStep is a leading consultancy firm focused on ServiceNow. In 2020, the company had a turnover of just over SEK 20 million, with an operating margin of more than 20 per cent.
«We quickly saw that we share many things in common with TCP, such as strategy, values, our view of employees and clients, as well as the importance of having fun at work. All of this will ensure a smooth merger. It is very inspiring to become part of The Cloud People,» says Fredrik Jacobsen, CEO of Verano SpringStep.
He adds that the merger will strengthen the company’s market position. It will both facilitate faster organic growth and secure increased delivery capacity.
«In addition, TCP’s expertise on Google Cloud complements our services. Being able to offer two of the fastest growing cloud platforms on the market further strengthens our position and opens up exciting opportunities in the future,» Jacobsen explains.
Whyaye! is a ServiceNow consultancy firm based in Newcastle, England. Their client list includes Danske Bank, Telefonica and The Royal Bank of Scotland. The Cloud People has entered into a strategic agreement with whyaye! which involves the exchange of consultants through the Cloudia platform.
«It was an easy decision to enter into a partnership with The Cloud People. Both organisations strive to deliver top quality customer services at a reasonable price, providing great value. I am extremely motivated to work with a like-minded organisation,» says Joshua Broad at whyaye!
«The partnership with whyaye! gives us a foothold in the UK, at the same time as it provides access to ServiceNow resources. Our clients can find consultants at whyaye! through Cloudia, and that is just the beginning of our plans to increase access to resources on the platform. We are working with several potential partners we can add to Cloudia in the future,» says TCP’s Bjørn Jarl.
Longship Fund II has acquired the majority of the shares in TCP, with the remaining shares owned by the management team and key employees at TCP.
Longship is a Norwegian private equity firm, established in 2015 by four partners with extensive experience in investment activities and the development of growth companies. Longship invests in small and medium-sized Norwegian companies with significant growth potential and contributes to creating transformative growth, organically and through acquisitions. Longship is the leading private equity player on the market for the acquisition of small and medium-sized Norwegian companies. Longship Fund II has an investment capital of NOK 1.7 billion.
Nora Rinnan, Managing Partner and Head of Marketing: +47 90208503.
Bjørn Jarl, Group CEO and Chairman of the Board: +47 90852875.