June 3, 2020 @ 10:33 by Richard Dawson
Mercia Asset Management’s £2 million Northern Venture Capital Trust Funds (NVCTF) investment into Atlas Cloud has proven to be well-timed after the Newcastle-based IT company reported that March was the busiest month in its history.
The NVCTF, managed by Mercia, backs high-quality management teams in businesses that have the potential for significant growth.
The Atlas Cloud investment adds to Mercia’s growing portfolio of almost 250 businesses, which they’ve backed across the UK.
North East law firm, Muckle LLP, advised the team from Mercia on the legal aspects of the deal.
Since then, Atlas Cloud has continued to go from strength to strength, providing support to businesses such as Sage and HS2. It will use the £2 million investment to further develop its range of services and support its growth plans.
The company expects to create 20 new jobs at its Newcastle headquarters in the next two years, as well as increasing turnover to in excess of £10 million by 2025.
It also recently appointed Nigel Redwood, former Nasstar CEO, as non-executive director to help accelerate growth plans.
With March being the busiest month on record for Atlas Cloud, the company has also offered advice to businesses struggling with the impact of COVID-19 for free, as part of a no obligation service.
Atlas Cloud chief executive Pete Watson said: “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 investment has allowed us to react to changes in the market very quickly. We had profile from the deal and had working capital to be able to accelerate the investment we needed to scale up quickly to support our customers.”
Alex Wilson of Mercia said: “Atlas Cloud has established itself as 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 the team on the next phase of their journey.”
Matthew Walsh, partner at Muckle LLP who led the legal advice to Mercia alongside solicitor Hayden Richards, added: “We are very pleased to have supported Mercia on this transaction. Cloud-based solutions offer resilience and security to a wide range of businesses and are clearly in increasing demand.
“We wish Alex and the team at Mercia and Pete and the team at Atlas Cloud every success in the future.”