March 18, 2020 @ 9:56 by Steven Hugill
An award-winning IT company has secured a £2 million investment to support job creation and expansion plans.
Atlas Cloud has been supported by the Northern Venture Capital Trust Funds (VCTs), which are managed by Mercia.
Bosses say the funding will allow the Newcastle firm to further develop its range of solutions and pursue ambitious growth targets.
The company expects to create 20 new jobs at its North East headquarters in the next two years, increasing existing staff numbers to 55, and bolstering turnover from £2.5 million to more than £10 million by 2025.
Established in 2010, Atlas Cloud offers a raft of managed IT solutions, with its clients ranging from local SMEs to blue-chip firms and high-profile names such as Sage, Experian, Magnox and HS2.
The company has grown revenues by an average of 53 per cent in each of the past three years, and expanded its client base, with more than 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 £5.2 million.
Chief executive Pete Watson [pictured], 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, added: “Cloud IT helps companies achieve digital transformation, and 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 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.