KinderSystems, a developer of childcare subsidy management software backed by Firmament Group, has hired Macquarie to explore a potential sale, said two sources familiar with the matter.

The process has not launched yet, the two sources said, with one noting a launch is expected sometime this fall or in the first quarter of 2025. The same source said KinderSystems could fetch a valuation multiple of 5-6x ARR in the event of a transaction.

KinderSystems recently interviewed bankers for a potential sale, this news service reported in July. The Escondido, California-based company generates around USD 20m in revenue, as reported.

KinderSystems was formed in October 2021 when Firmament merged Controltec with COPA, a provider of data management software for early childhood education programs. In May 2022, the combined company’s name was changed to KinderSystems.

KinderSystems provides subsidy management solutions to state agencies, Head Start programs, and childcare providers, according to the company’s website.

KinderSystems and Firmament did not return requests for comment. Macquarie declined to comment.