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Blackstone-Managed Funds Purchase Majority Stake in London Tech Firm Cloudreach

US investment major Blackstone ( BX ) said on Thursday that funds which it manages have acquired a majority stake in London-headquartered Cloudreach, adding that it is targeting additional investments in the technology firm going forwards.

Blackstone, which had $367 billion of assets under management as of the end of 2016, did not disclose the value of the stake, but said that it sees 'a significant opportunity to ignite dramatic growth' in the business in the years ahead, pointing to research which indicates that the field of cloud services will grow substantially over the next three years

"The public cloud services market is expected to grow into a $236 billion industry by 2020 according to Forrester," Dave Johnson, a senior advisor to Blackstone, said in Blackstone's statement. "Additionally, Bain & Company estimates that 60% of all IT growth will be related to the cloud in the coming years".

"We are entering into this industry at a key inflection point and will seek to make additional investments to accelerate and expand Cloudreach's capabilities," he added.

Founded in 2009, Cloudreach provides cloud-based services and counts publishers Time Inc. and Hearst as well as travel booking platforms Skyscanner and Trainline among its clients.

Johnson will become chairman of the board of directors at Cloudreach and Pontus Noren, the cloud provider's co-founder will become its chief executive, Blackstone said.

"This investment by Blackstone will allow us to continue to expand our geographic reach, our software development capabilities, and further automate and expand our managed services, cloud operations capabilities," Noren said.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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