Gryphon Investors announced that it has reached a definitive agreement to sell 3Cloud, its rapidly expanding Microsoft Azure services portfolio company, to Cognizant Technology Solutions. The deal marks one of the most significant Azure-focused services acquisitions of the year and is expected to close in the first quarter of 2026. Terms were not disclosed.
Founded in 2016 and headquartered in Chicago, 3Cloud has grown into one of the leading Azure-dedicated cloud, AI, and data engineering consultancies. The company offers a comprehensive suite of modern data engineering capabilities, cloud-native AI application development, advanced analytics solutions, and Azure-managed services. It is also recognized as an Elite Databricks partner and a global leader in Azure-dedicated AI enablement.
Since Gryphon’s initial investment in 2020, 3Cloud has completed multiple acquisitions and driven organic growth at a rate exceeding 20% annually. Over the course of five years, revenue scaled more than twelvefold while the company built one of the largest independent Azure expertise pools in North America. CEO Mike Rocco and President Jim Dietrich will continue in key leadership roles as part of Cognizant’s Azure practice.
The transaction also marks a significant milestone for Gryphon’s Technology Solutions & Services Group, following years of platform development, sector specialization, and portfolio expansion. Gryphon emphasized that the 3Cloud journey helped shape its broader technology services investment strategy, paving the way for continued activity across cloud and AI services.
Support: Lazard and Kirkland & Ellis advised Gryphon on the sale, while Cognizant was represented by Mayer Brown.
KEY QUOTES:
“It’s been an incredible five years partnering with Mike Rocco, Jim Dietrich, and the entire 3Cloud team to help build the preeminent Microsoft Azure services firm in North America. 3Cloud was our first investment in technology services, and its success paved the way for numerous other investments and ultimately establishing Gryphon’s dedicated industry specialty group investing in this dynamic sector. This is an exciting milestone for Gryphon and 3Cloud – we hope to enjoy many more similarly rewarding partnerships with management teams in the attractive cloud & AI services sub-sector in the future.”
Gabe Stephenson, Deal Partner and Co-Head of Gryphon’s Technology Solutions & Services Group
“Gryphon has been an exceptional partner and a true catalyst for 3Cloud’s growth. From day one, they shared our vision and brought the strategic guidance, operational support, and resources to help us scale through both organic expansion and strategic complementary M&A. As we worked together to build a leading Microsoft Azure services firm in North America, Gryphon’s partnership has not only fueled our success over the past five years but also positioned us for continued high growth ahead — they’re the kind of partner every founder hopes to have.”
Mike Rocco, CEO of 3Cloud
“Our investment in 3Cloud exemplifies the Gryphon model by combining our thematic investment approach with an integrated ‘win-win’ partnership with management teams, which are often under-resourced, to build leading, truly high-quality businesses. Gryphon’s attractive 3Cloud exit underscores how our sector specialization, proactive collaboration, dedication of functional experts, and shared vision with management teams drive transformational growth, and value creation for all shareholders. 3Cloud’s success, the strong business building occurring with multiple other current TSSG portfolio companies, and our recent hiring of Operating Partner and TSSG Co-Head Vikram Mahidhar, previously an Apollo Operating Partner, all reinforce Gryphon’s enthusiasm for continuing to build category leaders across attractive sub-sectors of technology services.”
David Andrews, Founder and Co-CEO of Gryphon
