CLAREMONT — A major New York private equity fund has acquired control of Claremont IT consulting firm Red River Technology.

Cerberus Capital Management, which oversees a portfolio of companies in aerospace, defense, health care, real estate and retail, announced in a news release this week that it bought through an affiliate a “majority stake” in Red River from a group that includes the company’s original shareholders and Acacia Partners.

Terms weren’t disclosed.

Red River Technology, founded in Hanover in 1995 with a handful of employees as Red River Computer Co. before moving to a refurbished mill building on the Sugar River in Claremont, contracts to provide IT management and support services for the federal government, municipalities and the private sector.

Calling Cerberus — whose portfolio of companies generates $70 billion in revenue — a “world-class partner,” Red River CEO Alan Dumas in the news release said the majority equity sale would allow the company to “invest in expanding our capabilities, further drive operational excellence, and pursue strategic acquisitions to better serve our customers.”

For its part, Cerberus indicated that that Red River is a lucrative investment opportunity, given the government’s and private sector’s critical reliance on digital technology and the need to manage and maintain digital infrastructure.

“Digital transformation and modernization are critical to the success of government agencies and businesses. Red River is a trusted partner that is well-positioned to meet the growing demand for integrated technology solutions and services,” Michael Sanford, senior managing director at Cerberus, said in the news release.

Cerberus owns the Shaw’s supermarket chain, and its past investments include gunmaker Remington and the Hollywood studio Spyglass Entertainment.

Former Vice Dan President Dan Quayle and former Treasury Secretary John Snow are among its senior leadership team.

The Cerberus news release was silent on whether the sale would result in employee 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 “will continue to lead the company and its operations alongside the existing management team.”

Messages sent to Red River spokespeople and executives requesting comment were not immediately returned.

A spokesperson for Cerberus declined to comment on record.

As a privately held company, Red River does not release financial results but says it employs 750 people at offices in four states.

That’s an increase from 2017 when the company said it had 250 employees, of which about 100 worked at its Claremont headquarters, and was approaching $500 million in revenues.

The 25-year old company, despite fabulous growth, has not been without some high-profile setbacks.

Two years ago its recently promoted CEO, Jeffrey Sessions, was killed in a boating accident in Maryland.

And in 2011, the company paid $2.3 million to settle charges that it violated the False Claims Act by failing to provide products to federal agencies it had contracted with.

A co-founder of the company, Breck Taylor, pleaded guilty to charges of defrauding federal agencies and was sentenced to three years in prison.

Contact John Lippman at jlippman@vnews.com.

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