Crayon CFO reveals rationale behind Cloud Direct investment
Nordic software asset management firm has an option to take majority stake in UK MSP
The CFO of Norwegian IT solutions provider Crayon says its investment in UK-based MSP and Microsoft partner Cloud Direct demonstrates its "commitment to driving growth in the UK".
Crayon, ranked 68th on CRN's VAR 350 2021, has invested £3m to take a minority stake in the Azure Expert MSP and Microsoft Gold Partner, with the agreement also including an option for Crayon to further invest in a majority ownership of the company at a later date.
And the CFO of the Nordic software licensing giant, Jon Birger Syvertsen, said the investment represents a wider focus on UK growth from the company, along with an increased emphasis on its Microsoft capabilities.
"I think it's an exciting opportunity for Crayon and that excitement is also echoed by the Cloud Direct team," he said.
"If you look at that rationale behind it, both Crayon and Cloud Direct are, as of today, Microsoft Azure Expert MSPs, and this enables us to build further on that expertise and support customers in leveraging the benefits of the cloud in the UK but of course, we're also entering into this structure with Cloud Direct with a view to our global business and operations.
"We're continuing to drive strong growth in the UK on our core business models, so we're continuing to see that, and obviously the potential in the UK for Crayon is significantly beyond where we're at today.
"We continue to see the UK as a very significant market opportunity and this investment demonstrates our commitment to driving growth in the UK."
Cloud Direct has annual revenues of £20m, Crayon says, 82 per cent of which is recurring revenue, and employs 165 people.
Announcing the investment, the Nordic firm said its aim was to create "an end-to-end public cloud infrastructure and economics offering" and Birger Syvertsen told CRN there is high ambitions for Cloud Direct, as shown through Crayon's option to secure a majority investment.
"The fact that we have that option reflects our interests and ambitions for the business," he added.
"And then obviously, there's a there's a pathway to achieving that. But clearly, we're seeing an attractive long-term prospect in the Cloud Direct business."