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IT services provider swoops for niche provider to establish Legal sector specialist MSP Group.
Newcastle IT services company Atlas Cloud Limited has expanded its operations by acquiring London-based firm Challow Design Network Services Limited.
The IT managed services and cyber security services provider, based in the centre of Newcastle upon Tyne, aims to increase its geographical footprint, deepen its offering in the legal services sector and increase its capacity to service larger clients.
Challow, based near King’s Cross in London, is a niche IT services provider that maintains a unique IT solution designed for law firms and barristers’ chambers. The fully managed, compliance-first solution aligns firms and chambers with the UK Government’s Cyber Essentials scheme – whether operating with Partners, employed solicitors/clerks or self-employed Barristers.
The combined company will leverage Atlas Cloud’s operational engine to widen the availability of Challow’s all-in-one solution for the legal sector, while also merging Atlas Cloud’s cyber security division to incorporate Cyber Essentials accreditations and services like penetration testing under one roof.
Pete Watson, CEO of Atlas Cloud, outlines the strategy behind the decision:
“We’re delighted to welcome the Challow team to Atlas Cloud, it’s an ideal match.
“Challow have spent years perfecting a totally unique solution, choosing to refine with their current customer base over pursuing growth. Atlas Cloud has in recent years placed a huge emphasis on developing an operational blueprint that delivers a great service in a scalable way. It’s given us greater capacity, allowed us to tighten SLAs and our customer feedback scores are now consistently world-class.
“Together, we make the industry’s best-kept secret – eager to disrupt the legal services sector.”
Atlas Cloud, which boasts customers like Ward Hadaway and Thackray Williams, will absorb Challow’s customer base including firms like 7 Bedford Row and Warners Solicitors to become a leading provider to the legal sector. Atlas Cloud’s longstanding security-first mantra will continue to be adopted across the combined group.
Challow director, Andy Fryer – who has become Operations Director across the new group – adds:
“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 capabilities and take it to a wider market.”
It comes at a time when compliance and security are hot topics in the legal sector. Updated guidance issued jointly by the Law Society and the Bar Council in 2024 aimed to “promote a culture of change” about information security in the sector. Earlier this year, the Government announced its plans to tighten cyber security across its supply chain and, later this year, Cyber Essentials certifications will become mandatory for all legal aid firms.
The acquisition comes two years into a five-year strategy for Atlas Cloud. The business will continue to invest in both Newcastle and London locations, with the north becoming a hub for service and cyber security operations and the south focusing on technology operations.
The next key element of the overall strategy is to ramp up its innovations team, designed to help law firms unlock the potential of Generative AI and make savings on chargeable hours.
Pete Watson expands on his plans for the future:
“We’ve invested heavily in perfecting our operational blueprint. Now we’re 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.
“We’re 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.”
