The company has attracted investment from the region and secured additional shareholders from the North East and London.

The deal will also enable the company to double the size of its workforce.

Pete Watson, chief executive of Atlas Cloud, said the investment will be “fundamental” in helping to maintain its “rapid response performance”.

“We are delighted to receive continuing and additional support from our investors and are looking forward to this continuing period of growth and development,” he added.

Atlas Cloud was supported by Chris McCourt of accountancy firm Tait Walker and Paul Wigham from Watson Burton.

McCourt said the funds would “push the business onto a new level”, adding that it would “no doubt will see Atlas Cloud position itself as one of the leading firms” in its field.

Atlas Cloud’s chief commercial officer Adam Waugh said: “We have been well supported by our advisers as well as our investors as we closed this round of investment.

“This represents confidence in the strategy and management of the business, and of the skill-sets that the North East is able to offer in the IT sector.

“We are delighted to welcome funding from the Finance for Business North East Technology Fund, which is managed by IP Group, and several London-based investors onto our shareholder list, and also to receive continued support from Northstar Ventures.”

Atlas Cloud is headquartered in Newcastle with offices in Leeds, Sheffield, Manchester and London.