Sergey Nivens - stock.adobe.com
Arc bolsters position with Skye Cloud buy
Managed services player makes fourth acquisition in the space of two years as it continues to expand the business
Arc has continued to use mergers and acquisitions (M&A) as a route to expanding skills and footprint making a move to pick up Skye Cloud.
The addition of the fellow MSP will provide more geographical coverage and bolster Arc’s ability to support not-for-profit organisations.
Arc has used acquisition in the past as a route to not only adding fresh skills and customers, but also to bolster its market position, striking a trio of deals in the last year including Clear Thinking (MSP) in January 2024, Nationwide IT Consultancy in October 2024 and Perspicuity in January 2025.
Skye will offer its customers access to a wide range of Microsoft services that are part of Arc’s key capabilities.
James Clayden, CEO of Arc, said that around 80% of Skye’s team is made up of engineers and that the business shared its commitment to delivering high levels of customer support.
“Following three acquisitions in just over a year, we’re proud to be refining a model that allows us to integrate and scale successfully,” he said. “Skye Cloud represents our largest acquisition to date, marking a significant milestone for our business. It’s an exciting time for Arc, and I’m looking forward to what we’ll accomplish together with our new Skye Cloud colleagues.”
In response, James Bishop, managing director at Skye Cloud, said that becoming part of the Arc family would benefit both staff and customers: “One of the key attractions of Arc is its commitment to providing brilliant service: being able to uphold that same service level that our customers have become used to was a key driver for us in choosing an acquisition partner.
“This partnership opens new avenues for scaling our operations and driving investment, allowing us to deliver innovative and value-added services to our customers.”
Arc is now operating out of five UK locations, with 175 staff, supporting more than 1,000 businesses across the UK with a range of managed services. Skye has offices in both London and Dartford with a team of 35 working with more than 150 customers.
Elsewhere, there has been some consolidation in the sustainably software market, with UK player Dcycle acquitting German software firm ESG-X. The deal is part of Dcycle’s strategy to expand its European footprint and bolster its position in an ESG software market that is experiencing significant consolidation activity.
The acquisition will combine Dcycle’s infrastructure for non-financial data management and ESG-X’s AI technology for double materiality assessments and corporate sustainability compliance.
“The European ESG software market has entered a clear consolidation phase,” said Juanjo Mestre, CEO and co-founder of Dcycle. “With over 100 solutions competing to solve isolated parts of the problem, the fragmented model no longer meets the real needs of the companies we serve.
“Our vision is clear: the only way to scale sustainability data efficiently is through integrated platforms that enable companies to own their data infrastructure. This acquisition is all about building the best possible product for our customers.”
ESG-X operates from Munich and Dusseldorf, and Dcycle views the German market as a key territory to expand into as it widens its European reach.
