Gryphon Investors Completes Sale of 3Cloud to Cognizant

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.

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

Argus Jan 2 session

-2.07% close to close Open Argus

Details

News Market Reaction – CTSH

On Jan 2, the day this news came out, CTSH closed 2.07% below the previous close.

Data tracked by StockTitan Argus for the Jan 2 session.

Market Context

This announcement confirms Cognizant’s acquisition of 3Cloud, a Microsoft Azure-focused services pro...

Analysis

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.

Key Figures

3Cloud founding year: 2016 Announcement date: November 13, 2025 Organic growth rate: over 20% per year +1 more

3Cloud founding year

2016

Year 3Cloud was founded

Announcement date

November 13, 2025

Original announcement of 3Cloud transaction

Organic growth rate

over 20% per year

3Cloud organic growth under Gryphon’s ownership

Scale increase

approximately 12x

3Cloud scale increase since June 2020 investment

Historical Context

5 past events · Latest: Dec 24

5 events

1. Dec 24

   AI coding blueprint

   24h Move

   +0.3%

   Launched Enterprise Vibe Coding Blueprint for secure, scalable AI-assisted coding.

2. Dec 18

   Microsoft partnership

   24h Move

   +0.2%

   Multi-year strategic Microsoft partnership to co-build and co-sell AI solutions.

3. Dec 17

   BPaaS AI deal

   24h Move

   +0.2%

   Five-year AI-driven BPaaS claims modernization deal with Bupa Hong Kong.

4. Dec 16

   IT services agreement

   24h Move

   -0.5%

   Five-year IT services agreement with ERIKS to manage operational IT.

5. Dec 11

   AI lab opening

   24h Move

   +0.7%

   Opened India AI Lab and Moment Studio under $1B generative AI initiative.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SAN FRANCISCO, Jan. 2, 2026 /PRNewswire/ -- Gryphon Investors ("Gryphon"), a leading middle-market private investment firm, announced today that it has completed the sale of its portfolio company 3Cloud ("the Company"), a highly scaled dedicated Microsoft Azure services provider, to Cognizant Technology Solutions Corporation (NASDAQ: CTSH). The transaction was originally announced on November 13, 2025. Financial terms are not disclosed.

Founded in 2016 and headquartered in Chicago, Illinois, 3Cloud offers comprehensive solutions that help customers optimize business outcomes within Microsoft Azure, including being a global leader in Azure-dedicated AI enablement solutions. 3Cloud's offerings are purposely built to optimize the value of Microsoft's Azure platform with a proven track record in modern data engineering, cloud-native AI application development, advanced analytics, and Azure managed services. 3Cloud is also an Elite Databricks partner. Since Gryphon's initial investment in June 2020, the Company has completed multiple add-on acquisitions, while also growing organically at over 20% per year to increase its scale by approximately 12x.

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 $10 billion of assets under management, Gryphon prioritizes investments in which it can form strong partnerships with founders, owners, and management teams to accelerate the building of leading, high-quality companies and generate enduring value through its integrated deal and operations business model. Gryphon's highly-differentiated model integrates since 1999 its well-proven Operations Resources Group, which is led by full-time, Gryphon senior operating executives with general management, artificial intelligence, human capital acquisition and development, acquisition due diligence and integration planning, treasury, finance, and accounting expertise. Gryphon's three core investment strategies include its Flagship, Heritage, and Junior Capital strategies, each with dedicated funds of capital. The Flagship and Heritage strategies target equity investments of $50 million to $500 million per portfolio company. The Junior Capital strategy targets investments of $10 million to $25 million in junior securities of credit facilities, arranged by leading middle-market lenders, in both Gryphon-controlled companies, as well as in other private equity-backed companies operating in Gryphon's targeted investment sectors.

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 Chicago, Illinois with offices in Dallas, Texas and supports clients throughout North America.

Contact:
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Caroline Luz
203-570-6462
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or 
Jennifer Hurson
845-507-0571
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View original content:https://www.prnewswire.com/news-releases/gryphon-investors-completes-sale-of-3cloud-to-cognizant-302651744.html

SOURCE Gryphon Investors

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When did Gryphon complete the sale of 3Cloud to Cognizant (CTSH)?

The sale was completed on January 2, 2026, after a November 13, 2025 announcement.

What growth did 3Cloud achieve under Gryphon's ownership since June 2020?

3Cloud grew organically at over 20% per year and increased scale by approximately 12x.

Were the financial terms of the 3Cloud acquisition by Cognizant disclosed?

No, financial terms were not disclosed in the announcement.

What does 3Cloud specialize in and what partnerships were noted?

3Cloud provides Microsoft Azure services, Azure AI enablement, modern data engineering, and is an Elite Databricks partner.

Who advised Gryphon and Cognizant on the 3Cloud transaction?

Gryphon was represented by Lazard (transaction advisory) and Kirkland & Ellis (legal); Cognizant was represented by Mayer Brown.