H.I.G. WhiteHorse, the credit affiliate of H.I.G. Capital, has arranged a debt financing package to support the acquisition of Be-Cloud by QualityHosting, a portfolio company of PSG Equity.

H.I.G. Capital is a leading global alternative investment firm managing $75 billion in capital under management, with offices spanning the United States, Europe, the Middle East, and Asia.

The financing package will also provide additional capital to support the combined company’s ongoing growth ambitions and future mergers and acquisitions strategy.

Founded in 2012 and headquartered in France, Be-Cloud is a leading European Microsoft (NASDAQ: MSFT) Cloud Solution Provider and Value-Added Distributor, serving SMEs through direct and indirect channels across Europe.

Be-Cloud holds a Top 30 EMEA Microsoft CSP ranking and operates a subscription-based model with more than 37,500 active end-customers and a network of over 1,000 active resellers and MSP partners.

QualityHosting, founded in 1998 and headquartered in Gelnhausen, Germany, was the first Microsoft CSP established in Germany and serves more than 30,000 end customers alongside approximately 1,000 reseller partners.

The German company positions itself as the market leader in Hosted Exchange solutions across Germany, Austria, and Switzerland, combining Microsoft cloud products with proprietary offerings such as Managed Security 365.

Together, the two businesses form a combined group with significant scale across the European Microsoft cloud ecosystem, focused on cloud infrastructure, cybersecurity, managed services, and AI adoption for SMEs.

Pascal Meysson, Head of H.I.G. WhiteHorse Europe, said: “Be-Cloud and QualityHosting combine a recurring revenue business model with a leading and differentiated position in the Microsoft ecosystem, as well as a strong track record of growth.”

Meysson added: “We believe that with the scale of the newly combined group, it is well positioned to benefit from continued cloud, AI and cybersecurity adoption. H.I.G. is delighted to partner with PSG Equity and management for the next phase of growth.”

The deal underscores growing investor appetite for recurring-revenue cloud businesses serving the SME segment, particularly those embedded deeply within Microsoft’s global partner ecosystem.

H.I.G. has invested in and managed more than 400 companies worldwide since its founding in 1993, with a current portfolio of more than 100 companies generating combined sales in excess of $53 billion.