Key Takeaways
- • O2 Investment Partners has sold portfolio company Xobee Networks to Brite, a portfolio company of Sole Source Capital, according to a Business Wire announcement.
- • Xobee is a managed IT services provider headquartered in Fresno, California, serving a long-tenured SMB customer base across 34 states and more than 1,700 customers.
- • O2 first invested in Xobee in January 2022 and oversaw six add-on acquisitions during its holding period.
- • Xobee's leadership, including CEO Eric Rawn, will continue under Brite and SSC, which plan to fund further growth of the platform.
Summary
O2 Investment Partners, a Midwestern private equity firm based in Bloomfield Hills, Michigan, announced the recent sale of its portfolio company Xobee Networks to Brite, which is itself a portfolio company of Sole Source Capital (SSC), according to a Business Wire release. The announcement did not disclose the transaction value.
Xobee is a full-service managed IT services provider headquartered in Fresno, California. Per the release, it offers cloud, cybersecurity, hosted voice and other services to a long-tenured small and medium-sized business customer base across 34 states. The company, founded in 1996, has approximately one hundred employees and serves more than 1,700 customers.
O2 made its initial investment in January 2022. During its ownership, O2 and management pursued organic and inorganic growth, and Xobee completed and integrated six add-on acquisitions that expanded its service offerings, customer base and geographic reach. Sam Wegenke of O2 Investment Partners said the team had built "an industry leader with a truly differentiated service offering."
Eric Rawn, CEO of Xobee, said O2 had been a supportive partner and that the company looks forward to working with Brite and SSC, whose operational expertise, M&A support and network he expects to help strengthen the platform. Scott Sussman, Chief Investment Officer at SSC, said Xobee's capabilities and SMB footprint complement Brite's strength in regulated end markets and that SSC is prepared to invest behind the team's continued growth.
Brite, founded in 1983 and headquartered in upstate New York, delivers IT services, cybersecurity and public safety technology. SSC, founded in 2016 by David A. Fredston and headquartered in Dallas, Texas, targets fragmented, high-growth industrial subsectors using a buy-and-build strategy.
Xobee is a full-service managed IT services provider headquartered in Fresno, California. Per the release, it offers cloud, cybersecurity, hosted voice and other services to a long-tenured small and medium-sized business customer base across 34 states. The company, founded in 1996, has approximately one hundred employees and serves more than 1,700 customers.
O2 made its initial investment in January 2022. During its ownership, O2 and management pursued organic and inorganic growth, and Xobee completed and integrated six add-on acquisitions that expanded its service offerings, customer base and geographic reach. Sam Wegenke of O2 Investment Partners said the team had built "an industry leader with a truly differentiated service offering."
Eric Rawn, CEO of Xobee, said O2 had been a supportive partner and that the company looks forward to working with Brite and SSC, whose operational expertise, M&A support and network he expects to help strengthen the platform. Scott Sussman, Chief Investment Officer at SSC, said Xobee's capabilities and SMB footprint complement Brite's strength in regulated end markets and that SSC is prepared to invest behind the team's continued growth.
Brite, founded in 1983 and headquartered in upstate New York, delivers IT services, cybersecurity and public safety technology. SSC, founded in 2016 by David A. Fredston and headquartered in Dallas, Texas, targets fragmented, high-growth industrial subsectors using a buy-and-build strategy.
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