North East Connected

Sky’s the limit for cloud IT firm after £2m investment

An award-winning Newcastle IT company, which provides cloud and network solutions to blue-chip clients nationwide, has secured a £2m investment from the Northern Venture Capital Trust Funds (VCTs), which are managed by Mercia. 

The funding will allow Atlas Cloud to further develop its range of solutions and pursue its ambitious growth plans. The company expects to create 20 new jobs at its Newcastle headquarters in the next two years, increasing existing staff numbers to 55, and increase turnover from £2.5 to over £10m by 2025. 

Established in 2010, Atlas Cloud offers a complete range of managed IT solutions and has a reputation for delivering high-quality, secure services. Clients range from local SMEs to blue chip firms and include high-profile names such as Sage, Experian, Magnox and HS2. The company has grown revenues by an average of 53 per cent for each of the past three years, and expanded its clientbase, with over half of its income now coming from outside the North East. The latest funding follows previous rounds of investment from North East regional funds and private investors, and brings the total raised to date to £5.2m. 

Pete Watson, CEO, said:We are delighted to have secured this latest funding round, our largest to date, which demonstrates the faith Mercia, and our previous investors, have in us. We promise customers that our cloud-based solutions work better than their traditional set-up so we need to make sure we are at the forefront of innovation! The funding will allow us to further improve our solutions and fulfil our plans to become a leading national player in the cloud computing market.” 

Alex Wilson of Mercia said :Cloud IT helps companies to achieve digital transformation. Atlas Cloud has established itself a high quality provider, even for those clients that require the most demanding levels of service and security. We believe the company has excellent growth prospects and look forward to supporting Pete and the team on the next phase of their journey. 

Armstrong Watson provided corporate finance advice to Atlas Cloud. Due diligence for Mercia was provided by Tait Walker (financial), Fairgrove (commercial), Intechnica (IT), Confidas People (management), Erimus (insurance), and Philip Hare and Associates (VCT Assurance). Muckle provided legal advice to Mercia, while Weightmans advised Atlas Cloud. 

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