Gryphon Investors to Sell 3Cloud to Cognizant

Rhea-AI Summary

Gryphon Investors has entered into a definitive agreement to sell portfolio company 3Cloud, a Microsoft Azure services and AI enablement provider, to Cognizant (NASDAQ: CTSH). The transaction is expected to close in Q1 2026 and financial terms were not disclosed. Founded in 2016 and headquartered in Chicago, 3Cloud grew organically at over 20% per year and its revenue rose by more than 12x during Gryphon's five-year partnership. CEO Mike Rocco and President Jim Dietrich will remain in key Azure practice roles with Cognizant.

Positive

• Revenue increased >12x during Gryphon's five-year ownership
• Organic growth of over 20% per year
• CEO and president to remain in key roles with Cognizant

Negative

• None.

Insights

M&A and Cloud Services Strategist

Acquisition signals strategic scale-up in Azure services; management retention and strong growth underpin value creation.

Gryphon Investors is selling 3Cloud to Cognizant with close expected in Q1 2026. The company grew organically at over 20% per year under Gryphon, and revenue expanded by more than 12x during Gryphon's five‑year hold, while management will continue in key roles in Cognizant's Azure practice.

The business mechanism is straightforward: an established private‑equity build‑and‑exit where operational support, add‑on acquisitions, and organic growth materially scaled a specialist Microsoft Azure services firm; Cognizant gains a dedicated Azure and AI engineering capability and Elite Databricks partnership without disclosed purchase price risk. Key dependencies and risks are integration execution, preservation of specialized talent and client relationships, and regulatory/closing conditions tied to the undisclosed financial terms.

Watch for the transaction close in Q1 2026, any disclosed purchase price or deal structure, and near‑term retention metrics for the named leadership team; those items will determine realized value and near‑term revenue contribution to Cognizant.

SAN FRANCISCO, Nov. 13, 2025 /PRNewswire/ -- Gryphon Investors ("Gryphon"), a leading middle-market private investment firm, announced today that it has entered into a definitive agreement to sell its portfolio company 3Cloud ("the Company"), a leading dedicated Microsoft Azure services provider, to Cognizant Technology Solutions Corporation (NASDAQ: CTSH). Financial terms for the transaction, which is expected to close in Q1 2026, were not disclosed.

Founded in 2016 and headquartered in Chicago, Illinois, 3Cloud offers comprehensive solutions that help customers optimize business outcomes within Microsoft Azure and is 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.

Gryphon initially invested in 3Cloud in 2020 and has since completed multiple add-on acquisitions, while the Company also grew organically at over 20% per year. In total, 3Cloud's revenue has increased by over 12x during Gryphon's five years of partnership. CEO Mike Rocco and President Jim Dietrich, along with other members of 3Cloud's management team, will continue in key roles in the Azure practice with Cognizant.

"It's been an incredible five years partnering with Mike Rocco, Jim Dietrich, and the entire 3Cloud team to help build the preeminent Microsoft Azure services firm in North America," said Gabe Stephenson, Deal Partner and Co-Head of Gryphon's Technology Solutions & Services Group ("TSSG"). "3Cloud was our first investment in technology services, and its success paved the way for numerous other investments and ultimately establishing Gryphon's dedicated industry specialty group investing in this dynamic sector. This is an exciting milestone for Gryphon and 3Cloud – we hope to enjoy many more similarly rewarding partnerships with management teams in the attractive cloud & AI services sub-sector in the future."

Mr. Rocco stated, "Gryphon has been an exceptional partner and a true catalyst for 3Cloud's growth. From day one, they shared our vision and brought the strategic guidance, operational support, and resources to help us scale through both organic expansion and strategic complementary M&A. As we worked together to build a leading Microsoft Azure services firm in North America, Gryphon's partnership has not only fueled our success over the past five years but also positioned us for continued high growth ahead — they're the kind of partner every founder hopes to have."

David Andrews, Founder and Co-CEO of Gryphon, said, "Our investment in 3Cloud exemplifies the Gryphon model by combining our thematic investment approach with an integrated "win-win" partnership with management teams, which are often under-resourced, to build leading, truly high-quality businesses. Gryphon's attractive 3Cloud exit underscores how our sector specialization, proactive collaboration, dedication of functional experts, and shared vision with management teams drive transformational growth, and value creation for all shareholders. 3Cloud's success, the strong business building occurring with multiple other current TSSG portfolio companies, and our recent hiring of Operating Partner and TSSG Co-Head Vikram Mahidhar, previously an Apollo Operating Partner, all reinforce Gryphon's enthusiasm for continuing to build category leaders across attractive sub-sectors of technology services."

Gryphon was represented in this transaction by Lazard and Kirkland & Ellis. 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:
Lambert
Caroline Luz
203-570-6462
cluz@lambert.com
or
Jennifer Hurson
845-507-0571
jhurson@lambert.com 

View original content:https://www.prnewswire.com/news-releases/gryphon-investors-to-sell-3cloud-to-cognizant-302614604.html

SOURCE Gryphon Investors

FAQ

When will Cognizant complete the acquisition of 3Cloud (CTSH)?

The transaction is expected to close in Q1 2026.

Were the financial terms disclosed for Gryphon's sale of 3Cloud to Cognizant (CTSH)?

No, financial terms were not disclosed in the announcement.

How large was 3Cloud's revenue growth under Gryphon's ownership before the sale to Cognizant (CTSH)?

3Cloud's revenue grew by more than 12x during Gryphon's five-year partnership.

What was 3Cloud's organic growth rate before being sold to Cognizant (CTSH)?

3Cloud grew organically at over 20% per year.

Will 3Cloud's leadership remain after the acquisition by Cognizant (CTSH)?

Yes. CEO Mike Rocco, President Jim Dietrich, and other management will continue in key Azure practice roles.

What capabilities does 3Cloud bring to Cognizant (CTSH)?

3Cloud provides Microsoft Azure-focused services including modern data engineering, cloud-native AI application development, advanced analytics, and Azure managed services.