H.I.G. Capital Completes Acquisition of Converge Technology Solutions and Merger of Converge Technology Solutions and Mainline Information Systems to Form "Pellera Technologies"

Rhea-AI Summary

Converge Technology Solutions (TSX:CTS, OTCQX:CTSDF) has been acquired by H.I.G. Capital, a global investment firm managing $69 billion in capital. The acquisition includes a merger with Mainline Information Systems, forming a new entity called Pellera Technologies.

The combined company 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 and services, with H.I.G.'s support accelerating investments in key technology areas. The transaction was advised by multiple financial institutions, including Guggenheim Securities, J.P. Morgan Securities, and Lazard Frères & Co.

Positive

• Formation of a $4 billion revenue company through merger
• Strategic expansion into key growth areas: cybersecurity, cloud, AI
• Backing from H.I.G. Capital ($69B AUM) provides financial strength
• Enhanced service offerings through combined expertise and resources

Negative

• Integration risks between Converge and Mainline operations
• Delisting of Converge from public markets (TSX, OTCQX)
• Potential organizational restructuring uncertainties

TORONTO, ON and GATINEAU, QC, April 22, 2025 /PRNewswire/ - Converge Technology Solutions Corp. ("Converge") (TSX:CTS) (FSE:0ZB) (OTCQX: CTSDF) is pleased to announce the successful completion of the previously announced acquisition of all of its issued and outstanding common shares by an affiliate of H.I.G. Capital ("H.I.G."), a leading global alternative investment firm with $69 billion of capital under management. In connection with the closing, Converge will merge with Mainline Information Systems, LLC ("Mainline"), an existing H.I.G. portfolio company. The combined company has been rebranded as Pellera Technologies ("Pellera"), representing its distinctive position in the market as a premier technology partner.

Pellera stands at the forefront of delivering innovative IT solutions to enterprise and mid-market clients. The combined company's deep technical expertise, strategic focus, and collaborative approach have enabled their customers to achieve impactful business outcomes through the power of technology. Pro forma for the combination, Pellera generated approximately $4 billion in revenue in 2024 and will provide unparalleled technology expertise to its customers in critical growth areas including cybersecurity, cloud, digital infrastructure, and AI.

Headquartered in Tallahassee, Florida, the new organization will be led by a dynamic and experienced leadership team with over a century of combined experience in the IT industry. Converge Chief Executive Officer Greg Berard will serve as Chief Executive Officer of Pellera, while Mainline President and CEO Jeff Dobbelaere will assume the role of President and Chief Operating Officer. This collaboration reflects the best of both organizations, ensuring the strength and capability of Pellera to achieve meaningful results.

Greg Berard, Chief Executive Officer of Pellera, said: "We're combining the bold vision, unmatched talent, innovative solutions, and trusted partnerships of Mainline and Converge to deliver differentiated value and elevate the customer experience. With H.I.G.'s support, we're accelerating investments in areas like AI, cybersecurity, hybrid cloud, app modernization, data, and managed services, with the goal of becoming the provider of choice for comprehensive technology solutions."

Jeff Dobbelaere, President and Chief Operating Officer of Pellera, said: "We are thrilled to join forces as we enter the next phase in our growth journey. Together, we have stronger relationships with our industry-leading partners, unlocking greater access and broader solutions for our clients. The business is poised to create more growth opportunities for our employees and enhance the value we deliver as dedicated partners on our customers' teams. We will continue to innovate, bring creative solutions, and generate an enduring transfer of expertise in every engagement."

Aaron Tolson, Managing Director at H.I.G., added: "We are excited to integrate two trusted and complementary IT solutions partners to boost service offerings and accelerate growth in complex and strategic areas of IT. The combined business offers enhanced IT solutions and services that will enable customers to continue reaching the next level. As part of the H.I.G. portfolio, Pellera is well-positioned to capitalize on emerging technology trends and expand its leadership within the IT market."

H.I.G. was advised by Guggenheim Securities, LLC, J.P. Morgan Securities, LLC, Lazard Frères & Co. LLC, BMO Capital Markets, Stikeman Elliott LLP and Weil, Gotshal & Manges LLP. Canaccord Genuity acted as lead financial advisor to Converge and its Board. Houlihan Lokey Capital was engaged as financial advisor to the Special Committee of Converge (the "Special Committee"), and Origin Merchant Partners was engaged as an independent financial advisor and provided a fairness opinion to the Special Committee. Goodmans LLP acted as legal advisor to Converge.

About Pellera Technologies

Pellera Technologies is where innovation powers progress. Through the combined expertise of Converge Technology Solutions and Mainline Information Systems, we deliver unparalleled IT solutions that drive momentum for enterprise clients worldwide. Our comprehensive suite of digital infrastructure, hybrid cloud, cybersecurity, and artificial intelligence solutions transforms challenges into opportunities and shapes a future where businesses can thrive. Guided by our AIM (Advise, Implement, Manage) methodology, we ensure solutions are tailored to your specific needs, aligning seamlessly with existing systems to drive success without complexity. At Pellera, we don't just keep you moving forward, we help you scale without limits.

About H.I.G. Capital

H.I.G. is a leading global alternative investment firm with $69 billion of capital under management.* Based in Miami, and with offices in Atlanta, Boston, Chicago, Los Angeles, New York, and San Francisco in the United States, as well as international affiliate offices in Hamburg, London, Luxembourg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro, São Paulo, Dubai, and Hong Kong, H.I.G. specializes in providing both debt and equity capital to middle market companies, utilizing a flexible and operationally focused/value- added approach:

• H.I.G.'s equity funds invest in management buyouts, recapitalizations, and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
• H.I.G.'s debt funds invest in senior, unitranche, and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets.
• H.I.G. also manages a publicly traded BDC, WhiteHorse Finance.
• H.I.G.'s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
• H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector.

Since its founding in 1993, H.I.G. has invested in and managed more than 400 companies worldwide. The firm's current portfolio includes more than 100 companies with combined sales in excess of $53 billion. For more information, please refer to the H.I.G. website at hig.com.

Forward Looking Information

This press release contains certain "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected" "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts". "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

Specifically, statements regarding the anticipated benefits of the transactions for Converge, Mainline or Pellera, their employees, business partners, shareholders and other stakeholders, including, plans, objectives, expectations and intentions of H.I.G., Converge or Pellera; and other statements that are not statements of historical facts are considered forward-looking information.

The forward-looking information are based on management's opinions, estimates and assumptions. While these opinions, estimates and assumptions are considered by H.I.G, Converge, Mainline and Pellera to be appropriate and reasonable in the circumstances as of the date of this press release, they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information.

The forward looking information are subject to significant risks including, without limitation: significant transaction costs or unknown liabilities; the failure to realize the expected benefits of the transactions; the effect of the transactions on the ability of Converge, Mainline or Pellera to retain and hire key personnel and maintain business relationships with customers, suppliers and others with whom they each do business, or on Converge, Mainline or Pellera's operating results; the inherent risks, costs and uncertainties associated with transitioning the business successfully and risks of not achieving all or any of the anticipated benefits of the transactions, or the risk that the anticipated benefits of the transactions may not be fully realized or take longer to realize than expected.

If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. Although H.I.G, Converge, Mainline and Pellera have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to them or that they presently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information.

There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents H.I.G, Converge, Mainline and Pellera's expectations as of the date specified herein and are subject to change after such date. However, H.I.G, Converge, Mainline and Pellera disclaims any intention or obligation or undertaking to update or revise any forward-looking information or to publicly announce the results of any revisions to any of those statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.

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SOURCE Converge Technology Solutions Corp.

FAQ

What is the revenue of the newly formed Pellera Technologies after the Converge (CTSDF) and Mainline merger?

Pellera Technologies generated approximately $4 billion in revenue in 2024 on a pro forma basis following the merger of Converge and Mainline Information Systems.

Who will lead Pellera Technologies after the Converge (CTSDF) acquisition?

Former Converge CEO Greg Berard will serve as CEO of Pellera, while Mainline's Jeff Dobbelaere will assume the role of President and COO.

What are the main technology focus areas for Pellera Technologies following the merger?

Pellera will focus on delivering solutions in cybersecurity, cloud, digital infrastructure, and AI, with additional emphasis on app modernization, data, and managed services.

How much capital does H.I.G. Capital manage, the firm acquiring Converge (CTSDF)?

H.I.G. Capital is a global alternative investment firm with $69 billion of capital under management.