Gryphon Investors Completes Sale of 3Cloud to Cognizant
Rhea-AI Summary
Gryphon Investors completed the sale of portfolio company 3Cloud to Cognizant (NASDAQ: CTSH) on January 2, 2026; the transaction was originally announced on November 13, 2025.
3Cloud, founded in 2016 and headquartered in Chicago, is a Microsoft Azure services provider and Elite Databricks partner. Since Gryphon's June 2020 investment, 3Cloud grew organically at over 20% per year and increased scale by approximately 12x through organic growth and multiple add-on acquisitions. Financial terms were not disclosed. Gryphon was advised by Lazard and Kirkland & Ellis; Cognizant was advised by Mayer Brown.
Positive
- Organic growth >20% per year since June 2020
- Scale expanded by ~12x under Gryphon ownership
- Strategic exit to Cognizant (CTSH) for Gryphon investors
- Elite Databricks partner and leadership in Azure AI enablement
Negative
- Financial terms not disclosed, limiting transparency on proceeds
News Market Reaction – CTSH
On the day this news was published, CTSH declined 2.07%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Ahead of this transaction’s completion, CTSH was down 1.35% while key peers FIS, WIT, BR, LDOS, and CDW also showed modest declines between about -0.7% and -1.58%, but no peers appeared in the momentum scanner, suggesting stock-specific rather than coordinated sector momentum.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 24 | AI coding blueprint | Positive | +0.3% | Launched Enterprise Vibe Coding Blueprint for secure, scalable AI-assisted coding. |
| Dec 18 | Microsoft partnership | Positive | +0.2% | Multi-year strategic Microsoft partnership to co-build and co-sell AI solutions. |
| Dec 17 | BPaaS AI deal | Positive | +0.2% | Five-year AI-driven BPaaS claims modernization deal with Bupa Hong Kong. |
| Dec 16 | IT services agreement | Positive | -0.5% | Five-year IT services agreement with ERIKS to manage operational IT. |
| Dec 11 | AI lab opening | Positive | +0.7% | Opened India AI Lab and Moment Studio under $1B generative AI initiative. |
Recent AI and partnership-related announcements have generally seen small positive price reactions, with one instance of divergence on a multi-year IT services deal.
Over the last month, Cognizant announced several AI- and cloud-focused initiatives, including a generative AI lab and Moment™ Studio in Bengaluru on Dec 11, 2025, a five-year IT services agreement with ERIKS on Dec 16, 2025, and multiple AI partnerships such as the expanded Microsoft collaboration on Dec 18, 2025. These events mostly produced modest positive moves (up to 0.72%), framing today’s 3Cloud acquisition closing as part of a broader AI and cloud strategy build-out.
Market Pulse Summary
This announcement confirms Cognizant’s acquisition of 3Cloud, a Microsoft Azure-focused services provider founded in 2016 that has grown organically at over 20% per year and scaled roughly 12x under Gryphon’s ownership. It fits a recent series of AI- and cloud-centric initiatives. Investors may monitor how 3Cloud’s Azure and AI capabilities integrate with Cognizant’s existing Microsoft partnership and broader generative AI investment program.
AI-generated analysis. Not financial advice.
Founded in 2016 and headquartered in
Gabe Stephenson, Deal Partner and Co-Head of Gryphon's Technology Solutions & Services Group, said, "We truly enjoyed the journey of working with CEO Mike Rocco, President Jim Dietrich, and the entire 3Cloud management team to build a preeminent Azure services provider. We are grateful for the hard work of the 3Cloud team and we appreciate the shared vision and ultimate success we had together. We wish the 3Cloud team well and expect them to continue to flourish and grow as a part of Cognizant."
Gryphon was represented in sale by Lazard on transaction advisory and Kirkland & Ellis on legal. Cognizant was represented by Mayer Brown.
About Gryphon Investors
Gryphon Investors is a leading middle-market private investment firm focused on growing competitively-advantaged companies in the Business Services, Consumer, Healthcare, Industrial Growth, Software, and Technology Solutions & Services sectors. With more than
About 3Cloud
3Cloud is a "born in the cloud," Gold-certified Microsoft Azure technology consulting firm and Azure Expert Managed Services Provider that provides cloud strategy, design, implementation, and managed services to clients across multiple industries. Founded by former Microsoft executives, 3Cloud combines a team of highly-experienced cloud architects and technologists with a strong network of Microsoft sales and engineering relationships to deliver the ultimate Azure experience for clients. 3Cloud has been recognized as a top Microsoft Azure partner worldwide, earning multiple Microsoft Partner of the Year Awards across categories such as Data & AI, Health & Life Sciences, Migration to Azure, Solution Assessments, and Modernizing Applications. 3Cloud has more than 1,000 Azure experts and engineers and 1,500+ Microsoft certifications. 3Cloud is headquartered in
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SOURCE Gryphon Investors
FAQ
When did Gryphon complete the sale of 3Cloud to Cognizant (CTSH)?
What growth did 3Cloud achieve under Gryphon's ownership since June 2020?
Were the financial terms of the 3Cloud acquisition by Cognizant disclosed?
What does 3Cloud specialize in and what partnerships were noted?
Who advised Gryphon and Cognizant on the 3Cloud transaction?
