Broadwing Capital, a Dallas-based private equity firm specializing in lower middle-market manufacturing and services sectors, has entered the IT MSP platform space by acquiring CloudScale365, a provider of managed IT, cloud, hosting and security solutions for small and medium-sized businesses.
The transaction is Broadwing’s initial investment into its platform launch. It valued CloudScale365’s “scalable sales engine,” customer relationships and knowledge across financial services, health care, legal and other vertical sectors, officials said. CloudScale365 offers fully managed and co-managed IT, cloud and infrastructure security, as well as Microsoft solutions. It has support teams in nine U.S. locations.
“As we evaluated the IT MSP market and developed our thesis around the industry, it became increasingly clear there was significant addressable whitespace in this highly fragmented industry,” said Eliot Kerlin Jr., co-founder and managing partner at Broadwing Capital. “With a focus on SMBs and a strong history of growth, CloudScale365 is the ideal cornerstone investment and foundation of our MSP platform.”
“CloudScale365 prides itself on our customized approach to each client’s individualized IT needs, and I’m confident Broadwing Capital is the right partner to help continue our expansion as we build our national service offering,” said Patrick Hannon, founder of CloudScale365. “Broadwing Capital’s proven track record of scaling companies is exactly what we need to further serve the growing needs and complexities of our clients.”
After 11 years leading CloudScale365, Hannon will transition to a consulting role, while the broader management team will remain intact, officials said. Broadwing has named Bret Kidd as CEO of CloudScale365. Kidd has more than 25 years in IT services across public and PE-backed companies.
“I’m honored to partner with Broadwing as we continue to expand CloudScale365’s reach and services to clients across the nation,” Kidd said. “During this next chapter, we are focused on expanding our capabilities across three major pillars: advanced AI solutions, enhanced cybersecurity offerings and continued investment in infrastructure and support.”
