NorthEdge invests in Cloud Technology Solutions

The deal will enable the company to undertake an acquisitive growth strategy, targeting businesses in the machine learning, artificial intelligence and data analytics spaces, in addition to investing in product development. According to a statement, the business has tripled its turnover in the last three years.

Financial details of the transaction remain undisclosed, though the GP is currently deploying capital from its second fund, which held a final close in March 2016 on £300m and typically writes equity cheques of £5-45m.

CTS's existing management team – comprising CEO James Doggart, chief sales officer Steve Dobson and chief financial officer Hannah Liptrott – will remain in place following the deal. NorthEdge partner and head of north-west operations Jon Pickering will take a seat on the company's board following the deal.

At the time of publication, NorthEdge was yet to confirm whether it had acquired a minority or majority stake, nor provide details of any debt associated with the transaction.

Company
Founded in 2008, Manchester-headquartered CTS is a cloud-focused IT and cloud-migration software business. The company helps businesses move their systems to cloud-based platforms with its migration software CloudMigrator and CloudPages.

CTS has a headcount of around 100, with additional offices in Edinburgh and Belfast. Its clients include Manchester City Council, RSPCA, Warwickshire County Council and HE Simm.

People
NorthEdge Capital – Jon Pickering (partner); Dan Matkin (investment manager).
Cloud Technology Solutions – James Doggart (CEO).

Advisers
Equity – GCA Altium, Simon Lord, Dom Orsini, Phil Chadwick (corporate finance); Squire Patton Boggs, Giles Chesher, James Fitzgibbon, Matt Canipa (legal); Deloitte, Jodi Birkett, Colin Kerr, Alex Ault (financial due diligence); EY, Olivier Wolf, Ulrich Loewer, Satya Ammu (technology due diligence, management due diligence); PwC, Simon Viner, Adam Waller (tax).
Management – Turner Parkinson, David Easdown, Matt Flanagan (legal).

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• Topics
• Buyouts
• UK / Ireland
• Technology
• United Kingdom
• NorthEdge Capital
• EY (Ernst & Young)
• GCA Altium
• Squire Patton Boggs
• Deloitte
• PwC