Sole Source Capital announced it has acquired Brite, a cybersecurity and IT managed services provider, marking the private equity firm’s first platform investment from SSC Partners Fund III as it expands into the cybersecurity and managed services market.
Brite, founded in 1983 and headquartered in Victor, New York, provides cybersecurity, managed IT services, and technology solutions to customers in regulated and security-sensitive industries including finance, healthcare, insurance, and education. Sole Source said Brite’s diversified customer base and recurring revenue profile provide a foundation for a buy-and-build strategy in what it described as a fragmented market.
Brite’s current leadership team will remain in place following the transaction, including CEO Justin Smith and President Trevor Smith. Financial terms were not disclosed.
Sole Source said it was attracted to secular demand drivers in cybersecurity and managed services, including an increasingly complex threat environment, greater IT outsourcing, ongoing digital transformation, and the growth of AI-enabled tools and workflows.
Support: Stifel served as financial advisor on the transaction. Woods Oviatt Gilman LLP served as legal advisor to Brite, and Sidley Austin LLP served as legal advisor to Sole Source Capital.
KEY QUOTES:
“We are excited to make Brite our first platform investment in Fund III. Consistent with our track record of partnering with management teams to build market-leading buy-and-build platforms, we believe Brite represents a compelling opportunity as we enter the cybersecurity and managed services sector. The company’s experienced leadership team and longstanding customer relationships provide a strong foundation to scale the business and expand its capabilities over time.”
David Fredston, Founder and CEO, Sole Source Capital
“We are attracted to the cybersecurity and managed service verticals, which possess strong secular tailwinds driven by the increasingly complex cyber threat environment, increased outsourcing, evolving digital transformation, and the growth of artificial intelligence. As organizations continue to outsource critical IT and security functions, we see significant opportunity to grow in this highly fragmented market and believe Brite’s capabilities and strong customer base create a differentiated platform to support strategic expansion.”
Scott Sussman, Chief Investment Officer, Sole Source Capital
“We are incredibly excited to be partnering with David, Scott, and the entire Sole Source Capital team. For the past 26 years, Brite has been focused on providing best-in-class IT solutions, including managed services and cybersecurity, to a diverse set of clientele across the United States. We look forward to working closely with SSC to rapidly scale the business and provide even greater value to our precious customers.”
Justin Smith, CEO, Brite
