Hadston 2 Limited, an investment vehicle led by entrepreneur and UKCloud Chairman Jeff Thomas and backed by existing institutional investors including BGF Group and Digital Alpha, has announced its acquisition of UKCloud. The UK multi-cloud solutions provider has been acquired for an undisclosed sum of money.
Hadston 2 is a newly formed special purpose investment firm controlled by entrepreneur Jeff Thomas. Through acquisitions, joint ventures, and strategic alliances, its objective is to build a portfolio of businesses centered on the ethical and sustainable use of data and digital infrastructure.
The new funding will be used to develop the company’s knowledge and capabilities in the defense and healthcare industries, as well as to accelerate the expansion of the company’s UKCloudX and UKCloud Health brands. As part of this expansion, major resources will be allocated to new training programs and a recruitment drive has commenced to fill a variety of new jobs and further reinforce the team’s experience.
Hadston 2’s new strategy for UKCloud would open the door to prospective acquisitions and worldwide growth to help nations that value and demand sovereign cloud technology.
“UKCloud has long been a market leader in the delivery of sovereign, secure cloud technologies to public sector organizations spanning government, health and defense – and today marks the beginning of a new, ambitious strategic vision,” said Jeff Thomas, Chairman at Hadston 2. “The funding provides a strong foundation on which to assemble a portfolio of innovative businesses promoting the ethical and sustainable use of data to drive positive change in our communities and economy. Organizations and governments increasingly share a belief in these crucial outcomes, and I am deeply excited to unveil more information about our growth plans and new direction in the very near future.”
Cloud and Digital Transformation in the UK
UKCloud’s significant digital footprint and leading sovereign offering – including multiple cloud technologies spanning six UK data centers and supporting multiple security classification levels – are now combined with Hadston 2’s ambitious strategic vision to build a group of companies leading innovation in the ethical and sustainable use of data and digital infrastructure. The acquisition is subject to the National Security Investment Act.
The new investment would enable UKCloud to expand its product portfolio through soon-to-be-announced strategic partnerships, accelerate the development of its platform, and create long-term high-skill, high-wage jobs for the benefit of the UK economy, society, and environment.
“As a strategic cloud provider to government, UKCloud has powered digital transformation across the UK public sector for over a decade,” said Simon Hansford, Chief Executive Officer (CEO) at UKCloud. “This investment is a significant milestone for UKCloud, funding the business through to profitability and accelerating the development of industry leading capabilities to help organizations of all sizes embrace the obvious benefits of cloud and digital transformation.”
BGF Group and Digital Alpha
BGF was founded in 2011 and has invested over £2.5 billion in over 400 businesses. BGF is a non-controlling minority equity partner with a long-term investment horizon, based on shared long-term objectives with the management teams it backs. Through its network of 16 offices, BGF invests in the growth of businesses in the United Kingdom and Ireland.
Digital Alpha Advisors is an investment firm focused on digital infrastructure and services required by the digital economy, with a strategic collaboration agreement with Cisco Systems. As part of the deal, Digital Alpha has priority access to Cisco’s commercial initiatives that need equity financing. Digital Alpha is a private equity fund focusing on market segments including smart cities, next-generation broadband networks, and business data management and communication solutions.