Cross-Pennine cloud companies merge in six figure deal

BRIGHOUSE-BASED Vapour Media is merging with Manchester’s EveryCloud in a “six figure” deal to create a converged cloud provider.

Cloud services provider EveryCloud and connectivity and next generation voice specialist Vapour will combine under the Vapour Media brand, creating a 30-strong tea, with a turnover of £1m. 

Both organisations target the SME market. EveryCloud provides cloud services through a white label proposition, focusing on hosted servers, backup and storage.

Additional investment funds have been raised to support the development of the combined business. Both companies were advised by Acceleris Capital Limited.

Finance Yorkshire has invested in Vapour Media over the years, totalling £550,000 since its first Seedcorn Fund investment.

Tim Mercer of Vapour Media, said: “In the business environment there is the opportunity for a connectivity-driven revolution that enables business growth and improvement through cloud services. This market is incredibly fragmented and for resellers there is no single ‘go to’ partner.

“Traditional IT companies, telcos and cloud start-ups are offering a bewildering array of solutions to embrace this. These worlds are colliding and SMEs are stuck in the middle.

“There is a place for a new breed of provider, marking a move away from telcos dabbling in computing or IT businesses dabbling in comms. There is a requirement for an integrated cloud provider that can credibly provide an all-in-one offering.”

Steve Dempsey of EveryCloud, said: “Our customers who are taking Backup and Data Storage services are increasingly looking to upgrade their connectivity and they are also likely candidates for phone and voice services too.

“This merger with Vapour Media will allow us to provide truly integrated cloud services to the SME market in a unique way that will be appealing to both IT and Comms resellers.”