Valley News business journalist
Published: 6/3/2021 10:01:20 PM
Modified: 6/3/2021 10:01:16 PM
CLAREMONT – A large New York private equity fund has taken control of Claremont IT consulting firm Red River Technology.
Cerberus Capital Management, which oversees a portfolio of aerospace, defense, healthcare, real estate and retail companies, announced in a press release this week that it has acquired a “majority stake” in Red River from a group through a subsidiary has to which the the original shareholders of the company and Acacia Partners.
Conditions were not disclosed.
Red River Technology, founded in Hanover in 1995 with a handful of employees as Red River Computer Co. before moving to a refurbished factory building on the Sugar River in Claremont, takes on IT management and support services for the federal government, municipalities and the private sector.
Red River CEO Alan Dumas named Cerberus – whose portfolio has sales of US $ 70 billion – a “world-class partner” in the press release and said in the press release that the majority share sale would allow the company “to invest in expanding our capabilities and to continue operating ”. Excellence and pursue strategic acquisitions to better serve our customers. “
For its part, Cerberus indicated that given the government and private sector’s critical reliance on digital technology and the need to manage and maintain digital infrastructure, Red River is a lucrative investment opportunity.
“Digital transformation and modernization are crucial for the success of authorities and companies. Red River is a trusted partner who is well positioned to meet the growing demand for integrated technology solutions and services, “said Michael Sanford, senior managing director at Cerberus, in the press release.
Cerberus owns the Shaw supermarket chain, and its previous investments include weapons maker Remington and Hollywood studio Spyglass Entertainment.
Former Vice-Dan President Dan Quayle and former Treasury Secretary John Snow are part of his senior leadership team.
Cerberus’ press release was silent on whether the sale would result in layoffs – a common occurrence when private equity firms acquire locally owned startups – but noted that co-founder Rick Bolduc will continue as a board member and Dumas “continues the management of the company and its activities together with the existing management team. “
Messages sent to Red River spokespersons and executives asking for comments were not returned immediately.
A Cerberus spokesman declined to comment on the files.
As a privately held company, Red River does not publish financial results, however says it employs 750 people in offices in four states.
Despite its incredible growth, the 25-year-old company was not without some setbacks.
Two years ago, recently promoted CEO Jeffrey Sessions was killed in a boat accident in Maryland.
And in 2011, the company paid $ 2.3 million to settle allegations that it violated the False Claims Act by failing to supply products to the federal agencies it contracted with.
A co-founder of the company, Breck Taylor, pleaded guilty to federal fraud and was sentenced to three years in prison.
Contact John Lippman at firstname.lastname@example.org.