Blackstone explores London cloud co options

TMT Finance has learnt that Blackstone [NYSE: BX] is considering options, including launching a 2022 sale process, for portfolio asset London-based global cloud enabler Cloudreach.

According to sources, the company could come to market in 2022, and no bank has been appointed and no formal process has been decided on yet.

Sources added that Cloudreach has had over 50% revenue growth with revenues believed to be at £200m to £300m.

Cloudreach is a cloud enabler, and operations business that provides products and services for mid-market and large enterprises, enabling them to adopt public cloud. Founded in 2009 by current CEO Pontus Noren, the business offers services including cloud consulting, cloud migration, cloud management, cloud data and analytics, cloud software and cloud application development.

With offices across seven countries, Cloudreach claims to be the only cloud-native company with significant presence in both Europe and North America and works alongside the likes of BP, Pearson and Hearst.

Blackstone acquired a majority stake in Cloudreach in 2017 for an undisclosed amount, with Arma Partners advising Cloudreach on the transaction.

In the same year Cloudreach snapped up two US businesses: Emerging Technology Advisors, a cloud professional services company; and Cloudamize, a cloud migration specialist.

In 2018 the business acquired Relus Cloud, a US-based data and analytics specialist which took Cloudreach’s headcount beyond 700.

Blackstone did not respond to a request for comment.