Wed, 23 Jul 2025 | BUSINESS SALE
A Newcastle-based IT services and cybersecurity provider has expanded its geographical reach and presence in the legal sector with the acquisition of a specialist IT provider based in London.
Atlas Cloud’s acquisition of Challow Design Network Services comes two years into the company’s five-year strategy. Based near King’s Cross, Challow Design Network Services is a specialist IT provider that offers a fully managed, compliance-first solution designed for law firms and barristers' chambers.
Through its five-year strategy, Atlas Cloud is undertaking significant investment in its operations in London and Newcastle. The company plans to use its base in the north as its service and cybersecurity hub, while its technology operations will be based in the south.
Following the acquisition, the combined business will be able to leverage Atlas Cloud’s operational infrastructure in order to widen the availability of Challow’s legal sector IT platform.
Atlas Cloud Chief Executive Pete Watson said that Challow’s “specialist solution for the legal sector complements our own security-first approach and operational expertise”. He added that the combined business would be “well-placed to drive innovation and deliver exceptional service to legal firms across the UK."
As part of the deal, Challow Director Andy Fryer will become the combined group’s Operations Director. Fryer said that this was “the right time to combine Challow’s compliance capabilities with Atlas Cloud’s security expertise and take it to a wider market."
Pete Watson added that, having “invested heavily in perfecting our operational blueprint”, Atlas Cloud was now focused on innovation, saying: “the next technological wave will come from the combination of AI and automation; we plan to be ahead of the curve."
UNW provided Atlas Cloud with corporate advice on the transaction, while Ward Hadaway provided legal advice.
UNW partner and Head of Corporate Finance Chris Wilson said that Atlas Cloud “has grown from strength to strength” and that the acquisition of Challow brings together “two highly complementary businesses”.
Wilson added that the deal highlights “a continued trend of strong M&A activity in the IT managed services market, despite the ongoing general market headwinds.”
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