Dallas, Texas | December 17, 2025:
Broadwing Capital, a Dallas-based private equity firm specializing in the lower middle-market manufacturing and services sectors, has announced the acquisition of CloudScale365, marking its first investment in a newly launched IT Managed Service Provider (MSP) platform.
The acquisition represents a strategic step in Broadwing Capital’s goal of building a strong, scalable, and nationwide platform in the managed IT services industry—one of the fastest-growing sectors in today’s digital economy.
CloudScale365: The Cornerstone of Broadwing’s IT Services Strategy
Founded by Patrick Hannon, CloudScale365 is a leading managed IT, cloud, hosting, and security solutions provider serving small and medium-sized businesses (SMBs) across the United States.
The company has built a strong reputation for delivering fully managed and co-managed IT services, cloud and infrastructure security, and Microsoft solutions to a wide range of industries including financial services, healthcare, legal, and professional services.
With a robust national presence, CloudScale365 operates support centers across nine regional locations in the U.S., providing 24/7 customer service and ensuring round-the-clock reliability for its clients’ IT operations.
Broadwing’s acquisition positions CloudScale365 as the cornerstone investment of its new IT Managed Services platform—an initiative focused on expanding digital capabilities for small and mid-sized enterprises through strategic acquisitions, technology innovation, and operational excellence.
Strategic Rationale: Tapping into a High-Growth Market
The move into the managed IT services space reflects Broadwing Capital’s long-term strategy to capitalize on one of the most rapidly expanding technology sectors.
Eliot Kerlin, Jr., Co-Founder and Managing Partner at Broadwing Capital, commented:
“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. With a focus on SMBs and a strong history of growth, CloudScale365 is the ideal cornerstone investment and foundation of our MSP platform.”
The MSP market has witnessed exponential growth in recent years as companies increasingly rely on outsourced IT services to manage complex systems, enhance cybersecurity, and leverage cloud-based infrastructure. Broadwing’s new platform seeks to bring together specialized regional providers under one scalable model, enhancing service quality and reach.
Leadership Transition and Future Vision
Following the acquisition, Patrick Hannon, Founder of CloudScale365, will transition to a consulting role after 11 years of leadership. The broader management team remains intact, ensuring business continuity and client consistency.
Broadwing Capital has appointed Bret Kidd as the new Chief Executive Officer of CloudScale365. Kidd brings over 25 years of experience in IT services, having held leadership positions across both public companies and private equity-backed firms.
Expressing enthusiasm for the company’s next phase, Bret Kidd stated:
“I’m honored to partner with Broadwing Capital as we continue to expand CloudScale365’s reach and services to clients across the nation. 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.”
This focus on AI integration, cybersecurity advancements, and infrastructure enhancement underscores CloudScale365’s commitment to innovation and resilience in a rapidly evolving digital landscape.
A Partnership Rooted in Growth and Values
Patrick Hannon, Founder of CloudScale365, expressed confidence in the partnership, noting:
“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. Broadwing’s proven track record of scaling companies is exactly what we need to further serve the growing needs and complexities of our clients.”
This partnership aligns with Broadwing’s founder-friendly investment philosophy—empowering leadership teams while providing operational and strategic resources to accelerate growth.