Red River, backed by Acacia Partners, has hit the auction block, sources familiar with the process told PE Hub.
Guggenheim Partners is advising the company on its sale process, which has now entered its second round, the sources said. First round bids were last week.
Red River, based in Claremont, New Hampshire, is an IT services provider that helps its clients solve issues related to data center management, security, analytics, networking, collaboration, mobility and cloud.
The company serves both commercial clients and government agencies. According to a company announcement from September, Red River’s federal contract portfolio was previously valued at over $120 billion.
The company employs 654, which presents 55 percent growth over Red River’s headcount in March 2019, according to the company’s LinkedIn page.
The company generates around $60 million in EBITDA and could sell for more than 10x, or over $600 million, some of the sources said.
The majority of the company, established in 1995, is owned by the company’s management team, led by CEO Alan Dumas and the company’s chairman and board of directors Rick Bolduc.
In March 2018, Acacia Partners injected a growth equity investment into Red River, supporting the company’s organic growth and M&A strategy.
In 2019, Red River acquired Washington DC-based CWPS, a complementary technology provider specializing in managed services, such as network, collaboration, data center, cloud management and security. The add-on also gave Red River a greater market presence in the Mid-Atlantic and Southeast.
Acacia Partners, based in Austin, Texas, invests exclusively in family-owned and owner-operated companies. The firm backs businesses ranging in enterprise value from $30 million to $250 million that are seeking majority or minority equity investment partners.
Acacia Partners, Red River and Guggenheim Partners did not return PE Hub’s requests for comment.