Converge Technol Stock Price, News & Analysis

H.I.G. Capital has completed the acquisition of Converge Technology Solutions (OTCQX: CTSDF) and merged it with Mainline Information Systems to form Pellera Technologies. The combined entity generated approximately $4 billion in revenue in 2024 and will focus on delivering IT solutions in cybersecurity, cloud, digital infrastructure, and AI.

Headquartered in Tallahassee, Florida, Pellera will be led by former Converge CEO Greg Berard as CEO, while Mainline's Jeff Dobbelaere will serve as President and COO. The merger aims to enhance IT solutions delivery and accelerate growth in strategic technology areas, backed by H.I.G.'s $69 billion capital management portfolio.

Converge Technology Solutions Corp. (TSX: CTS) (OTCQX: CTSDF) has received final approval from the Ontario Superior Court of Justice for its previously announced acquisition by H.I.G. Capital affiliate. The arrangement involves 16728421 Canada Inc. purchasing all issued and outstanding common shares of Converge, except for certain shares held by shareholders with rollover equity agreements.

The transaction, governed by an arrangement agreement dated February 6, 2025, and amended April 1, 2025, has now secured all necessary regulatory approvals. The deal is expected to close around April 22, 2025. Shareholders requiring assistance with share submission can contact Computershare Investor Services Inc., the designated depositary for the arrangement.

Converge Technology Solutions (TSX: CTS) has launched its Data & AI Design Studio, a comprehensive program aimed at helping businesses implement AI effectively. The initiative addresses common challenges in AI adoption, including data quality, privacy, security, and financial justification issues that often prevent projects from moving beyond proof-of-concept stage.

The program features a structured approach with various workshops and services including:

• AI Briefing for understanding AI tools and LLMs
• AI Ideation Workshop for identifying use cases
• Use Case Assessment Roadmap for strategic planning
• AI Design Thinking for evaluating implementation feasibility
• AI Solution Design for technical architecture development

According to CEO Greg Berard, 72% of businesses have adopted AI in at least one business function, yet many struggle with successful implementation. The Design Studio aims to provide organizations with the foundational support needed for long-term AI success, focusing on governance, data integrity, and vendor partnerships.

Converge Technology Solutions (TSX: CTS) (OTCQX: CTSDF) shareholders have overwhelmingly approved the proposed acquisition by H.I.G. Capital at a special meeting held on April 10, 2025. The arrangement received 98.85% approval from voting shareholders, with 98.71% support from minority shareholders, excluding rollover equity agreement participants.

The transaction will provide shareholders with C$6.00 per share in cash consideration, except for certain shares held by Rollover Shareholders. The deal saw strong participation with 131,318,378 votes cast, representing 69.63% of outstanding shares.

The company will seek final approval from the Ontario Superior Court of Justice on April 16, 2025, with the arrangement expected to complete around April 22, 2025.

Converge Technology Solutions (TSX: CTS) (OTCQX: CTSDF) has announced a important reminder for shareholders to vote before the proxy deadline regarding the upcoming special meeting on April 10, 2025. The meeting concerns the approval of an arrangement where H.I.G. Capital will acquire all outstanding common shares at C$6.00 per share.

The board of directors has unanimously recommended shareholders vote 'FOR' the Arrangement Resolution. The proxy voting deadline is set for 11:00 a.m. (Toronto time) on April 8, 2025. The meeting will be held virtually via audio webcast.

Shareholders can find detailed information in the management information circular dated March 10, 2025, available on SEDAR+ and Converge's website. For voting assistance, shareholders can contact Laurel Hill Advisory Group through their toll-free numbers or email.

Converge Technology Solutions (CTSDF) has amended its arrangement agreement with H.I.G. Capital, increasing the cash offer from C$5.50 to C$6.00 per common share. This amendment follows a series of events including an unsolicited proposal from a third party on March 7, 2025, offering C$6.00 per share, and subsequent legal proceedings initiated by H.I.G. Capital.

The third party later submitted a binding proposal at C$6.00 and subsequently increased it to C$6.10 per share. However, the Board unanimously determined that accepting H.I.G.'s amended C$6.00 per share offer was in the company's best interests, citing transaction certainty and timeline advantages.

The special shareholders' meeting to approve the arrangement is scheduled for April 10, 2025, with the transaction expected to complete around April 17, 2025.

Converge Technology Solutions (TSX: CTS, OTCQX: CTSDF) has announced the filing of its management information circular for a special shareholder meeting regarding its acquisition by H.I.G. Capital. The meeting is scheduled for April 10, 2025, at 11:00 a.m. Toronto time in a virtual format.

Under the arrangement, H.I.G. Capital will acquire all outstanding shares for C$5.50 per share, valuing the company at approximately C$1.3 billion. This represents a 56% premium to the closing price on February 6, 2025. The Board of Directors unanimously recommends shareholders vote FOR the arrangement.

The transaction followed a comprehensive strategic review process initiated in 2022, which involved multiple potential buyers. The deal is expected to close around April 17, 2025, pending shareholder approval. The HSR Act waiting period has expired, satisfying one of the key conditions for completion.

Converge Technology Solutions (CTSDF) has reported its Q4 and FY2024 financial results, alongside a significant announcement of its acquisition by H.I.G. Capital. Q4 2024 showed mixed performance with gross sales reaching $1.11 billion (+2.5% YoY), revenue of $680.8 million (+4.6%), and Adjusted EBITDA increasing 3.0% to $47.9 million. However, gross profit decreased 1.6% to $178.6 million.

For FY2024, the company reported gross sales of $4.12 billion (+2.1% YoY), but saw revenue decline 4.2% to $2.59 billion. The company recorded a net loss of $181.0 million, primarily due to a non-cash impairment charge of $176.1 million on the Germany segment.

Most notably, H.I.G. Capital will acquire Converge at $5.50 per share in cash, representing a ~56% premium to the closing price on February 6, 2025. The transaction, valuing Converge at approximately C$1.3 billion enterprise value, will be voted on by shareholders on April 10, 2025. The company has suspended its quarterly dividend and 2025 outlook guidance pending the transaction.

Converge Technology Solutions (CTSDF) has released preliminary Q4-2024 and fiscal year 2024 results. For Q4-2024, the company reported gross sales of $1.1 billion (+2.5% YoY), revenue of $680.8 million (+4.6% YoY), and Adjusted EBITDA of $47.9 million (+3.0% YoY). However, Q4 showed a loss before income taxes of $21.2 million, largely due to a $24.0 million impairment from Portage CyberTech investment.

For fiscal year 2024, while gross sales reached $4.1 billion (+2.1% YoY), revenue declined 4.2% to $2.6 billion. The company faced significant challenges with a $200.5 million loss before income taxes, primarily attributed to a $176.1 million impairment loss in the German segment and $25.9 million loss from Portage investment. The company will discuss complete financial results in a conference call scheduled for March 6th, 2025.