H.I.G. WhiteHorse Secures Financing for Be-Cloud and QualityHosting Acquisition

H.I.G. WhiteHorse's Financing Support for Be-Cloud and QualityHosting

H.I.G. WhiteHorse, the credit affiliate of H.I.G. Capital, has recently announced an important financing arrangement to support the acquisition of Be-Cloud by QualityHosting. This strategic move is set to bolster the capabilities of both companies in the evolving digital landscape.

The Financing Deal

This financing package not only covers the acquisition cost of Be-Cloud by QualityHosting, a portfolio company of PSG Equity, but also includes additional capital aimed at enhancing the growth strategies of the newly formed entity. With strong foundations built on recurring revenue business models and robust operational frameworks, both firms are primed for success.

Company Profiles

Be-Cloud

Founded in 2012 and headquartered in France, Be-Cloud has established itself as a premier Microsoft Cloud Solution Provider (CSP) across Europe. As a recognized Value-Added Distributor, it offers a comprehensive range of IT solutions encompassing cloud, artificial intelligence, and cybersecurity services tailored to small and medium-sized enterprises (SMEs). With a subscription-based business model, Be-Cloud serves over 37,500 active customers and boasts a robust network of over 1,000 reseller and managed service provider (MSP) partners. Their reputation as a Top 30 EMEA Microsoft CSP is underscored by a solid platform that combines software distribution with value-added services. Their product suite, which includes offerings like Office 365 and Microsoft 365, has cemented their status as a go-to for organizations seeking modern tech solutions.

QualityHosting

On the other hand, QualityHosting has been a stalwart in the German market since its founding in 1998. As a pioneer Microsoft CSP, the company specializes in providing tailored cloud infrastructure, managed services, and hosting solutions to SMEs. QualityHosting serves over 30,000 end customers and maintains a network of around 1,000 reseller partners, emphasizing its foundational role in the tech ecosystem of Germany, Austria, and Switzerland. Its automated service delivery platform melds Microsoft cloud distribution with managed services and legacy hosting, making it a comprehensive resource for businesses looking to advance their IT capabilities.

Strategic Insights

Pascal Meysson, who heads H.I.G. WhiteHorse in Europe, remarked, «Be-Cloud and QualityHosting represent an ideal merger of capabilities within the Microsoft ecosystem. Their strong growth trajectory and recurring revenue models place them in an advantageous position to harness continued trends in cloud computing, artificial intelligence, and cybersecurity.»

Future Prospects

The merging of these two companies aims to create a more formidable competitor in the tech world, ideally suited to leverage the growing demand for cloud solutions and cybersecurity services among SMEs. With the backing of H.I.G. WhiteHorse’s financing, both Be-Cloud and QualityHosting are positioned to accelerate their market penetration and enhance their service offerings significantly.

H.I.G. Capital, which manages a substantial investment portfolio worth $75 billion, underscores its commitment to partnering with innovative firms like PSG Equity and management teams to drive pivotal growth phases in companies that utilize agile and operationally focused strategies. Since its inception in 1993, H.I.G. has consistently invested in a variety of industries, with a demonstrated track record of nurturing over 400 companies globally. This recent acquisition amplifies H.I.G.'s portfolio and readiness to engage with the ever-changing demands of technology.

Conclusion

H.I.G. WhiteHorse's strategic financing for Be-Cloud and QualityHosting is a significant development in the tech industry, marking a step towards a more integrated and service-oriented approach to cloud computing. As both entities combine their expertise, they are set to redefine their market strategies and enhance service delivery in the competitive landscape of IT solutions for SMEs.