Converge Technology Solutions Corp. is pleased to announce that it has entered into a restructuring agreement with an affiliate of HIG Capital, pursuant to which HIG has agreed to acquire all of the issued and outstanding common shares of the Company. Under the terms of the Restructuring Agreement, shareholders will receive C$5.50 per Common Share in cash, excluding Common Shares held by certain shareholders entering into share rollover agreements. The purchase price for the Transaction values Converge at an enterprise value of approximately C$1.3 billion. Following completion of the Transaction, the Company intends to request delisting of the Common Shares from all public markets and cease to be a reporting issuer under Canadian securities laws.
Additionally, as a result of the transaction, Converge will join HIG’s current owned entity, Mainline Information Systems, LLC . Headquartered in Tallahassee, Florida , Mainline is a diversified IT solutions provider specializing in enterprise servers, hybrid cloud, cyber storage, and network and security solutions, as well as providing associated professional and managed services. Converge and Mainline offer complementary products and services, and their union will enable the combined companies to better serve customers with a broader and more diverse array of solutions in areas such as cybersecurity, cloud, and digital infrastructure. The combined business will be led by a proven management team that reflects the strengths and capabilities of both organizations. Following the closing, Converge’s CEO, Greg Berard , will serve as CEO of the combined business and Mainline’s President and CEO, Jeff Dobbelaere , will serve as President.
“Converge stands out as an organization that understands where technology trends are headed in the IT market and has aligned its business accordingly, and has a proven reputation as a trusted advisor to its customers,” said Aaron Tolson , Managing Director of HIG Capital. “We are excited to merge Converge with HIG-owned Mainline, a company that has advised IT decision makers in managing their most critical workloads for decades. The combined company will bring a breadth and depth of technology and services capabilities to its customers and OEM partners that differentiate themselves in the areas of data center infrastructure, networking, security and hybrid cloud.”
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“Converge is proud to begin a new chapter alongside HIG Capital,” said Greg Berard , CEO of Converge. “This alliance not only secures significant value for our shareholders, but also lays the foundation for improving the way we serve our customers. As technology continues to transform industries around the world, delivering comprehensive, forward-thinking solutions is vital to helping our customers succeed. We are excited to continue leading the way as a transformative force in the IT industry.”
“We are excited to join forces with Converge as we begin the next phase of our growth journey,” said Jeff Dobbelaere , President and CEO of Mainline. “Our expertise in hybrid cloud, on-premises infrastructure, cybersecurity and software solutions complements Converge’s established expertise. Together, we are poised to create significant growth opportunities for our employees and enhance the value we deliver to customers by leveraging our combined capabilities to expand our service offerings and provide the most in-demand solutions in the market.”
The Company intends to release preliminary results for the fourth quarter of fiscal 2024 on Monday, February 10, 2025. Gross profit and Adjusted EBITDA for the fourth quarter of 2024 are expected to be at the high end of our previously provided range of gross profit of $165 – $178 million and Adjusted EBITDA of $36 – $47 million.
SOURCE: PRNewsWire