H.I.G. WhiteHorse has arranged a debt financing package to support the combination of Be-Cloud and QualityHosting, which are joining forces with the backing of PSG Equity. The financing package will also provide additional capital to support the combined company’s future growth and M&A strategy.
QualityHosting is a portfolio company of PSG Equity, while Be-Cloud is a France-based Microsoft Cloud Solution Provider and Value-Added Distributor serving small and medium-sized businesses through direct and indirect channels.
Founded in 2012, Be-Cloud operates a subscription-based business serving more than 37,500 active end-customers and works with a network of more than 1,000 active resellers and managed service provider partners across Europe. H.I.G. said Be-Cloud is a Top 30 EMEA Microsoft CSP.
Germany-based QualityHosting provides cloud infrastructure, Microsoft 365, cybersecurity, managed services, and hosting solutions to small and medium-sized businesses. The company serves more than 30,000 customers and works with approximately 1,000 reseller partners.
QualityHosting was the first Microsoft Cloud Solution Provider in Germany, according to the announcement, and has developed a service delivery platform combining Microsoft cloud distribution, managed services, security, and legacy hosting.
By joining forces, Be-Cloud and QualityHosting are creating a larger European Microsoft cloud services platform with exposure to continued growth in cloud infrastructure, AI, cybersecurity, and managed services. The combined group brings together recurring revenue businesses, established customer bases, and extensive reseller and managed service provider networks across Europe.
The additional capital provided through the financing package is intended to support the combined company’s organic expansion and future M&A strategy as it builds greater scale across the Microsoft ecosystem.
H.I.G. WhiteHorse is the credit affiliate of H.I.G. Capital, which manages approximately $75 billion in capital and provides financing solutions to middle-market companies.
KEY QUOTES:
“Be-Cloud and QualityHosting combine a recurring revenue business model with a leading and differentiated position in the Microsoft ecosystem, as well as a strong track record of growth. We believe that with the scale of the newly combined group, it is well positioned to benefit from continued cloud, AI and cybersecurity adoption. H.I.G. is delighted to partner with PSG Equity and management for the next phase of growth.”
Pascal Meysson, Head Of H.I.G. WhiteHorse Europe
