Broadwing Capital Ventures into IT Managed Services with CloudScale365 Acquisition

Broadwing Capital Delves into IT Managed Services with CloudScale365

In a significant industry move, Broadwing Capital, a private equity firm based in Dallas, has officially launched its IT managed services platform. This marks their first investment in the sector with the acquisition of CloudScale365, a prominent player in providing managed IT services tailored for small and medium-sized enterprises (SMBs).

CloudScale365 has a robust reputation for delivering managed IT, cloud, hosting, and security solutions, positioning itself as a trusted partner for numerous SMBs across various industries such as financial services, healthcare, and legal sectors. The firm's comprehensive service offerings include fully managed and co-managed IT services, ensuring that clients benefit from seamless cloud infrastructure security and Microsoft solutions.

Broadwing Capital's co-founder, Eliot Kerlin, Jr., expressed excitement over this acquisition, stating, "The IT managed services market has significant untapped potential. Our analysis highlighted a clear opportunity in this fragmented landscape, particularly with a focus on SMBs that are experiencing rapid growth." He emphasized that CloudScale365 is a perfect first step in Broadwing's strategy to establish a strong MSP platform.

CloudScale365’s founder, Patrick Hannon, also shared his enthusiasm about the partnership. He stated that Broadwing Capital is the right ally to help propel the company's expansion, particularly as they build a national presence in the managed services arena. "We pride ourselves on offering bespoke IT solutions tailored to each client, and with Broadwing's proven track record of enhancing company growth, we anticipate achieving even greater heights together," Hannon said.

As this transition unfolds, Hannon will move into a consulting role while the existing leadership team remains intact. The appointment of Bret Kidd as the new CEO marks a pivotal moment for CloudScale365. Kidd brings over 25 years of experience in IT services, with a history of scaling dynamic platforms within both public and private equity-backed companies.

Kidd noted, "I am excited to collaborate with Broadwing Capital and aim to broaden CloudScale365’s service offerings to clients all over the United States. Our focus will be directed towards advanced AI solutions, bolstered cybersecurity features, and continual upgrades of our infrastructure and customer support capabilities."

Broadwing Capital is well-known for strategically growing niche platforms into market leaders through hands-on operational support, indicating that their partnership with CloudScale365 will likely enhance its market position significantly.

Located in Dallas, Broadwing specializes in investments within the lower middle-market manufacturing and services sectors, fostering a founder-friendly approach that encourages sustainable growth. The firm has an impressive track record, including involvement in over 70 transactions which yielded more than $900 million in equity, demonstrating its commitment to enhancing the companies it supports.

CloudScale365, for its part, is committed to helping organizations navigate the complexities of technology implementation while controlling costs. With its extensive knowledge team, they strive to deliver customized IT solutions that meet the demands of various sectors swiftly and effectively.

Through this acquisition, Broadwing Capital is not only expanding its portfolio but also positioning itself strategically in a high-demand sector that will see continued growth as more businesses seek reliable IT partnerships. The future looks promising for both entities as they embark on this journey together, poised to redefine managed IT services for SMBs across the nation.