Aug 20 (Reuters) - Investment firm Turn/River Capital is

exploring a potential sale of Redwood Software that could value

the maker of automation software at about $2.5 billion including

debt, according to people familiar with the matter.

San Francisco-based Turn/River has tapped Goldman Sachs ( GS )

to launch a sale process for Redwood that is expected to

attract interest from other private equity firms, the sources

said, requesting anonymity as the discussions are confidential.

Redwood could command a valuation equivalent to roughly 25

times its earnings before interest, taxes, depreciation, and

amortization of about $100 million, the sources said, adding the

talks are at an early stage and no deal is guaranteed.

Goldman Sachs ( GS ) and Redwood Software declined to comment.

Turn/River Capital did not respond to a request for comment.

Frisco, Texas-based Redwood is a provider of software that

automates a wide range of routine and time-consuming tasks

including customer relationship management, software testing,

journal entries and the processing of invoices.

The company, which employs more than 550 people worldwide,

focuses on large corporate clients that have complex operations,

such as Apple ( AAPL ), Hewlett Packard Enterprise ( HPE ),

Texas Instruments ( TXN ), Coca-Cola, and General

Motors ( GM ).

Private equity firms have traditionally been active

acquirers of software businesses that generate predictable cash

flows. Reuters reported earlier in August that TA Associates and

Silversmith Capital are exploring a stake sale in collaboration

software maker Appfire.