Sole Source Capital Acquires Brite, Launching Cybersecurity Consolidation Play

DALLAS, TX – January 12, 2026 – Private equity firm Sole Source Capital LLC has officially entered the booming cybersecurity sector with its acquisition of Brite, a prominent provider of cybersecurity and managed IT services. The deal, announced today, marks the first platform investment for Sole Source’s third fund, SSC Partners Fund III, signaling a strategic move to build a major player in a highly fragmented market.

The transaction places Brite, a company with a 40-year history, at the center of Sole Source’s ambitious plans to consolidate the managed security services space. While financial terms were not disclosed, the acquisition equips Brite with significant capital and operational resources to accelerate its growth and begin acquiring other firms, effectively transforming it from a standalone provider into a strategic platform.

A Strategic Bet on a Fragmented Market

The acquisition is a classic execution of Sole Source Capital’s signature “buy-and-build” investment thesis. Founded in 2016, the Dallas-based firm specializes in partnering with founder-led businesses in high-growth, fragmented industrial and business services sectors. Their model involves identifying a strong platform company and then aggressively pursuing strategic add-on acquisitions to rapidly scale operations, expand market share, and create a consolidated market leader.

This strategy has been successfully deployed across other sectors, such as with Peak Technologies, a system integrator in the data capture market that has seen significant expansion through numerous acquisitions under Sole Source's ownership. By selecting Brite as its Fund III launchpad, Sole Source is betting it can replicate this success in the cybersecurity space.

“We are excited to make Brite our first platform investment in Fund III,” said David Fredston, Founder and CEO of Sole Source Capital, in a statement. “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.”

Riding the Wave of Cybersecurity Demand

Sole Source Capital’s entry comes at a time of unprecedented demand for robust cybersecurity solutions. The global managed security services (MSS) market is experiencing explosive growth, with projections estimating its value will more than double from its current valuation of over $35 billion to nearly $95 billion within the next decade, reflecting a compound annual growth rate exceeding 10%.

This surge is fueled by a confluence of powerful secular trends. Businesses of all sizes are grappling with an increasingly sophisticated and hostile cyber threat landscape, from ransomware to advanced persistent threats. Simultaneously, the rapid pace of digital transformation, widespread cloud adoption, and the rise of remote work have exponentially expanded the digital attack surface, creating new vulnerabilities.

Adding to the pressure are stringent regulatory and compliance mandates in sectors like finance (PCI DSS), healthcare (HIPAA), and insurance, which carry severe penalties for data breaches. Compounding these challenges is a persistent global shortage of qualified cybersecurity professionals, making it difficult and expensive for many organizations to build and maintain effective in-house security teams. This perfect storm has made outsourcing to Managed Security Service Providers (MSSPs) not just a viable option, but a strategic imperative.

“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,” noted Scott Sussman, Chief Investment Officer at Sole Source Capital. “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.”

Brite’s Next Chapter: Platform for Growth

For Sole Source Capital, Brite represents an ideal foundation for its ambitious consolidation strategy. Founded in 1983, the Victor, New York-based company has cultivated a strong reputation and a resilient business model built on long-term relationships and recurring revenue.

Brite has carved out a valuable niche by providing mission-critical technology solutions to organizations in highly regulated industries. Its comprehensive service suite, including the BriteProtect and BriteStar offerings, provides clients with 24/7 expert-managed Security Operations Center (SOC) services, Extended Detection and Response (XDR), and Security Information and Event Management (SIEM). Crucially, these services are backed by US-based analysts, a key differentiator for clients concerned with data sovereignty and rapid response.

A critical component of the deal's stability is the retention of Brite’s leadership. CEO Justin Smith and President Trevor Smith, who have a combined tenure of over 45 years at the company, will continue to guide the organization. Their deep industry knowledge and established customer trust are seen as invaluable assets for executing the next phase of growth.

“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,” said Justin Smith, CEO of Brite. “We are incredibly excited to be partnering with David, Scott, and the entire Sole Source Capital team. We look forward to working closely with SSC to rapidly scale the business and provide even greater value to our precious customers.”

The 'Buy-and-Build' Blueprint in Action

The acquisition is not an end point, but the starting line for a new era of expansion for Brite. Infused with capital from Sole Source and guided by the firm’s M&A expertise, Brite is now positioned to become an acquirer itself. The fragmented nature of the MSSP market, populated by hundreds of smaller, regional providers, presents a rich landscape for consolidation.

Under Sole Source’s ownership, Brite is expected to actively seek out and acquire smaller cybersecurity firms that can enhance its technological capabilities, deepen its expertise in specific verticals, or expand its geographic footprint. This strategic expansion will allow the company to achieve greater scale, offer a more comprehensive suite of services, and compete more effectively against larger national players.

For Brite’s existing and future customers, the partnership promises accelerated innovation and an even more robust security posture. The influx of capital will likely fund investments in cutting-edge technologies like AI-driven threat intelligence and Security Orchestration, Automation, and Response (SOAR) platforms, strengthening Brite’s ability to protect clients against the next wave of cyber threats. By transforming Brite into a national consolidator, Sole Source Capital is not just investing in a single company, but is actively shaping the future of the managed security services landscape.