Red River Buys 60-Person Software and Application Development Firm

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Red River has purchased a software integration solution provider to increase its geographic footprint and expand the range of services it can provide to federal customers.

The Claremont, N.H.-based company, No. 55 on the 2017 CRN Solution Provider 500, acquired Sacramento, Calif.-based Natoma Technologies to boost its position in the fast-growing software space and gain a foothold in the Western United States, according to CEO Jeff Sessions.

"Everything we do now is based on software," Sessions told CRN. "Every hardware OEM is starting to look at their software play and trying to reimagine themselves in a software world."

[Related: Red River Promotes Sessions To CEO, Outgoing Chief Will Lead M&A Efforts]

Red River has until now focused on network and infrastructure-related integrations, Sessions said. Although the $500 million solution provider has relationships with pretty much every software manufacturer, Sessions said the company has refrained from helping customers integrate software into their current ecosystem.   

That all changes after the acquisition of 60-person Natoma, which closed last week. Sessions, who became Red River's CEO in February, said Natoma's synergy with OEMs is expected to drive exponential growth.

Natoma has tight relationships with Oracle, Microsoft, Salesforce and Amazon Web Services, according to Marty McGartland, Natoma's president and CEO. McGartland said his company has worked closely with state and local governments to support mission-critical systems around everything from licensing to Medicare eligibility.

"Many states face the same challenges," McGartland told CRN. "If you can do it in California, you can probably do it elsewhere." 

Natoma will operate as a standalone business unit with Red River focused on enterprise applications. McGartland will serve as the division's president, reporting to Red River Chief Operating Officer Dan McGee.

From Natoma's perspective, McGartland said becoming part of Red River will enable the company to go after bigger and more complex projects. The Natoma brand will be retained in the short-term, Sessions said, with the division gradually adopting the Red River moniker in the longer run.

"Until there's a comfort level, that will stay," Sessions said. 

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