Valley News Company Author
Revealed: 6/3/2021 10:01:20 PM
Modified: 6/3/2021 10:01:16 PM
CLAREMONT — A key New York personal equity fund has obtained regulate of Claremont IT consulting business Crimson River Technologies.
Cerberus Capital Management, which oversees a portfolio of corporations in aerospace, defense, wellbeing care, genuine estate and retail, introduced in a information launch this 7 days that it acquired through an affiliate a “majority stake” in Pink River from a team that features the company’s primary shareholders and Acacia Companions.
Terms weren’t disclosed.
Purple River Know-how, founded in Hanover in 1995 with a handful of personnel as Pink River Computer Co. in advance of going to a refurbished mill building on the Sugar River in Claremont, contracts to offer IT management and guidance providers for the federal government, municipalities and the private sector.
Contacting Cerberus — whose portfolio of organizations generates $70 billion in revenue — a “world-course spouse,” Pink River CEO Alan Dumas in the news release explained the majority fairness sale would allow the firm to “invest in expanding our capabilities, even more generate operational excellence, and pursue strategic acquisitions to greater provide our buyers.”
For its part, Cerberus indicated that that Pink River is a rewarding financial commitment prospect, presented the government’s and non-public sector’s important reliance on electronic technologies and the will need to manage and maintain electronic infrastructure.
“Digital transformation and modernization are crucial to the achievements of government agencies and businesses. Crimson River is a dependable companion that is very well-positioned to fulfill the increasing demand from customers for integrated know-how remedies and solutions,” Michael Sanford, senior handling director at Cerberus, said in the information release.
Cerberus owns the Shaw’s supermarket chain, and its past investments involve gunmaker Remington and the Hollywood studio Spyglass Leisure.
Former Vice Dan President Dan Quayle and former Treasury Secretary John Snow are amid its senior leadership crew.
The Cerberus information release was silent on no matter whether the sale would result in employee layoffs — a typical prevalence when personal equity corporations obtain locally owned startups — but noted that co-founder Rick Bolduc will continue on as a board member and Dumas “will carry on to guide the organization and its functions along with the present management staff.”
Messages despatched to Purple River spokespeople and executives requesting comment had been not promptly returned.
A spokesperson for Cerberus declined to comment on history.
As a privately held enterprise, Crimson River does not launch fiscal results but says it employs 750 people today at workplaces in four states.
That’s an improve from 2017 when the enterprise mentioned it experienced 250 workforce, of which about 100 labored at its Claremont headquarters, and was approaching $500 million in revenues.
The 25-calendar year old business, inspite of fantastic growth, has not been with out some significant-profile setbacks.
Two many years ago its not long ago promoted CEO, Jeffrey Periods, was killed in a boating incident in Maryland.
And in 2011, the organization paid out $2.3 million to settle costs that it violated the Wrong Claims Act by failing to supply merchandise to federal businesses it experienced contracted with.
A co-founder of the corporation, Breck Taylor, pleaded guilty to prices of defrauding federal agencies and was sentenced to a few several years in jail.
Make contact with John Lippman at [email protected].
