Gryphon Investors to Sell 3Cloud to Cognizant

Core Insights - Gryphon Investors has entered into a definitive agreement to sell its portfolio company 3Cloud, a leading Microsoft Azure services provider, to Cognizant Technology Solutions Corporation, with the transaction expected to close in Q1 2026 [1][3]. Company Overview - 3Cloud, founded in 2016 and headquartered in Chicago, Illinois, specializes in Microsoft Azure services, offering solutions that optimize business outcomes and is recognized as a global leader in Azure-dedicated AI enablement solutions [2][7]. - The company has a proven track record in modern data engineering, cloud-native AI application development, advanced analytics, and Azure managed services, and is an Elite Databricks partner [2]. Financial Performance - Since Gryphon's initial investment in 2020, 3Cloud has experienced significant growth, with revenue increasing by over 12 times during the five years of partnership, and the company has grown organically at over 20% per year [3]. Strategic Partnership - Gryphon's partnership with 3Cloud has been characterized by strategic guidance and operational support, which has been crucial for the company's growth and positioning for future expansion [4]. - The management team of 3Cloud, including CEO Mike Rocco and President Jim Dietrich, will continue in key roles within Cognizant's Azure practice post-acquisition [3]. Gryphon Investors' Strategy - Gryphon Investors focuses on growing competitively-advantaged companies across various sectors, including technology solutions and services, with over $10 billion in assets under management [5]. - The firm emphasizes forming strong partnerships with management teams to drive transformational growth and value creation [4][5].