Broadwing Capital, a Dallas-based private equity firm specializing in the lower middle-market manufacturing and services sectors, has acquired CloudScale365 as the first investment in its new IT Managed Service Provider (MSP) platform.
Nashville-based CloudScale365 provides managed IT, cloud, hosting, and security solutions for small and medium-sized businesses.
“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,” Eliot Kerlin, Jr., co-founder and managing partner at Broadwing Capital, said in a statement. “With a focus on SMBs and a strong history of growth, CloudScale365 is the ideal cornerstone investment and foundation of our MSP platform.”
Broadwing said that CloudScale365 brings a strong foundation as the equity firm’s initial MSP platform investment because of its scalable sales engine, longstanding customer relationships, and extensive vertical knowledge across financial services, healthcare, legal, and other sectors. The company offers fully managed and co-managed IT, cloud and infrastructure security, and Microsoft solutions to its clients. Teams provide 24-7 support across nine regional locations in the U.S.
CloudScale 365 leadership
“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 CloudScale365 Founder Patrick Hannon. “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.”
With outgoing CEO Pat Hannon transitioning to a consulting role after 11 years leading CloudScale365, Broadwing has named Bret Kidd as CloudScale365’s new chief executive. The company’s broader management team remains unchanged. With more than 25 years in IT services across public and PE-backed companies, Kidd has a proven track record of scaling platforms and building valuable companies, Broadwing said.
“I’m honored to partner with Broadwing Capital 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.”
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