#USA #Chicago #Cognizant #Gryphon Investors #3Cloud

Gryphon Investors to Sell 3Cloud

On November 13, 2025, Gryphon Investors, a prominent private equity firm focusing on middle-market investments, announced a significant deal involving its portfolio company, 3Cloud. In a definitive agreement, Gryphon is set to sell 3Cloud, a leading provider of dedicated Microsoft Azure services, to the well-known tech giant, Cognizant Technology Solutions Corporation (NASDAQ: CTSH). The financial specifics of the transaction have not been disclosed, but it is expected to finalize in the first quarter of 2026.

3Cloud was founded in 2016 and has its headquarters in Chicago, Illinois. The company boasts a range of comprehensive solutions designed to help clients optimize their business outcomes on the Microsoft Azure platform. Recognized globally as a leader in dedicated AI enablement solutions, 3Cloud has proven its capacity in modern data engineering, cloud-native AI application development, advanced analytics, and Azure managed services, not forgetting its status as an Elite Databricks partner.

Gryphon invested in 3Cloud in 2020, during which time the company has experienced remarkable growth. Over the last five years, 3Cloud has achieved an astounding revenue increase of more than 12 times, with an organic growth rate exceeding 20% annually. The success during Gryphon's partnership has laid the groundwork for 3Cloud's promising future, with its CEO Mike Rocco and President Jim Dietrich expected to retain key roles in the Azure practice under Cognizant.

Gabe Stephenson, Deal Partner and Co-Head of Gryphon's Technology Solutions Services Group, expressed his satisfaction regarding the partnership, highlighting how it helped build 3Cloud into North America's preeminent Azure services firm. He noted that this transaction symbolizes not just a pivotal moment for Gryphon and 3Cloud but also sets a precedent for future collaborations with other management teams in the rapidly evolving cloud and AI services sector.

Rocco acknowledged Gryphon’s role as an exceptional partner, underscoring the strategic guidance and resources they provided to help 3Cloud scale. Critiques indicate that Gryphon's involvement was crucial not only in fostering organic growth but also in executing strategic acquisitions that complemented 3Cloud's core offerings.

David Andrews, Founder and Co-CEO of Gryphon, elaborated on this transaction's significance, asserting that it exemplifies their investment model, combining thematic investment approaches with valuable partnerships with management teams. He commended 3Cloud's success and applauded the overall performance of other portfolio companies in Gryphon's Technology Solutions Services Group.

Gryphon's expertise shone through in this transaction, with teams from leading firms Lazard and Kirkland & Ellis advising Gryphon, while Cognizant received guidance from Mayer Brown. This strategic collaboration sets a notable example of how middle-market firms can partner effectively with technology providers to enhance growth and create value.

As the tech landscape continues to evolve, Gryphon Investors remains dedicated to establishing partnerships that enhance growth prospects across attractive technology services sub-sectors. Both Gryphon and 3Cloud stand optimistic about the future, not only for their respective firms but for the entire cloud computing industry as they navigate the challenges and opportunities that lie ahead. Stakeholders are not only looking forward to the integration of 3Cloud into Cognizant but also to the innovations and advancements that will surely emerge as the companies combine their strengths in the cloud domain.

In summary, the sale of 3Cloud to Cognizant marks a strategic move aimed at harnessing synergy in a competitive market. As Gryphon Investors continues to pave the way for potent partnerships, the tech industry watches closely, anticipating how these developments will reshape business approaches and client relationships within the realm of cloud services.