Atlas Cloud acquires London-based Challow with support from prominent North East advisors

Atlas Cloud Limited, the Newcastle-based IT services and cyber security provider, has acquired London-based Challow Design Network Services Limited as part of its strategy to strengthen its presence in the legal sector, expand its geographical reach, and increase its capacity to serve larger clients.

Challow, based near King’s Cross, is a specialist IT provider with a fully managed, compliance-first solution designed for law firms and barristers’ chambers. The combined business will leverage Atlas Cloud’s operational infrastructure to expand the availability of Challow’s all-in-one legal sector platform, while integrating Atlas Cloud’s cyber security division – including Cyber Essentials accreditations and penetration testing services – under one roof.

Pete Watson, CEO of Atlas Cloud, said: “We are delighted to welcome the Challow team to Atlas Cloud. Their specialist solution for the legal sector complements our own security-first approach and operational expertise, creating what we believe is the industry’s best-kept secret. Together, we are well-placed to drive innovation and deliver exceptional service to legal firms across the UK.”

Challow Director Andy Fryer, who becomes Operations Director for the combined group, added: “From day one of meeting Pete and the team, this has felt like the right thing to do. Now is the right time to combine Challow’s compliance capabilities with Atlas Cloud’s security expertise and take it to a wider market.”

The acquisition comes two years into Atlas Cloud’s five-year strategy, which includes significant investment in both its Newcastle and London operations. The business plans to use its northern base as a hub for service and cyber security, with technology operations focused in the south. A key part of the next phase will involve accelerating the company’s innovations team to help law firms harness the potential of generative AI and automation.

“We have invested heavily in perfecting our operational blueprint. Now we are full steam ahead on innovation – the next technological wave will come from the combination of AI and automation; we plan to be ahead of the curve,” added Pete Watson.

“We are already holding innovation roundtables with customers and building out proof of concepts, our next investment will help us dedicate more time to driving the legal sector forward.”

UNW provided corporate finance advice to Atlas Cloud, while legal advice was provided by Ward Hadaway.

Chris Wilson, Partner and Head of Corporate Finance at UNW, commented: “We are delighted to have supported Pete and the team on this strategically significant acquisition, which fittingly coincides with the recent celebration of Atlas Cloud’s 15-year anniversary. Atlas Cloud is an exciting North East business that has grown from strength to strength, with the acquisition of Challow bringing together two highly complementary businesses and further highlighting a continued trend of strong M&A activity in the IT managed services market, despite the ongoing general market headwinds. It has been a pleasure working alongside Pete and the team and we look forward to watching the combined group continue to scale and innovate.”