Converge Technol Stock Price, News & Analysis

Converge Technology Solutions Corp. (CTSDF) has appointed John Teltsch as Chief Revenue Officer. Teltsch, a seasoned executive with over 40 years of experience from IBM, will collaborate with President Greg Berard to enhance profit alignment and execute global strategies. His previous roles at IBM include General Manager of Technology Sales for key regions. Both Teltsch and Berard emphasize the importance of innovation and operational excellence in addressing challenging IT issues. This leadership addition aims to scale Converge's offerings and support clients across various industries.

Converge Technology Solutions Corp. (CTSDF) will announce its fourth quarter and fiscal year results for the period ended December 31, 2021, on March 22, 2022, after market close. A conference call is scheduled for March 23, 2022, at 8:00 AM EST, hosted by CEO Shaun Maine and Interim CFO Matt Smith. Interested participants can join via a toll-free number or through a webcast. The company provides IT and cloud solutions, including analytics, cybersecurity, and managed services, addressing unique requirements for clients across public and private sectors.

Converge Technology Solutions Corp. has announced the acquisition of 1CRM Systems Corp. through its subsidiary Portage CyberTech. This marks Converge's twenty-eighth acquisition since October 2017. The acquisition, valued at $3 million in cash plus up to $2 million in earn-out payments, provides Portage with a robust suite of business management tools designed for small and medium-sized enterprises. 1CRM's SaaS platform will enhance Portage's service offerings and is expected to drive growth, contributing approximately $820,000 in trailing twelve-month revenue.

Converge Technology Solutions Corp. reported significant growth in its preliminary Q4 and FY21 results, with net revenue rising 73% to $497.5-$504.5 million and FY21 revenue increasing by 61% to $1.52-$1.53 billion. Gross profit for Q4 grew by 62% to $114.0-$116.0 million, while FY21 gross profit rose 48% to $343.8-$345.8 million. Adjusted EBITDA improved by 43% in Q4 to $32.1-$34.8 million, and up 53% for FY21 to $91.4-$94.1 million. The company also reported operational cash flow of $17.8 million for Q4 and a cash position of approximately $248 million as of December 31, 2021, alongside a bookings backlog of roughly $350 million.

Converge Technology Solutions Corp. announced its acquisition of Visucom GmbH, a German-based supplier of audiovisual equipment for education and public sectors, along with its subsidiary School Supplies 4.0 GmbH. This acquisition aims to enhance Converge's offerings in Europe, allowing for a more comprehensive service portfolio to public sector clients. Since October 2017, Converge has completed 27 acquisitions, marking a significant step in their global expansion strategy.

Converge Technology Solutions has successfully acquired PDS Holding Company and its subsidiary, Paragon Development Systems, marking its 26th acquisition. The deal, valued at US$52 million in cash, aims to enhance Converge's offerings in the digital transformation sector, particularly in healthcare. PDS generated revenue of C$239 million with an adjusted EBITDA of C$11.4 million for the trailing twelve months. This acquisition is projected to be immediately accretive to Converge's financials, expanding its operational footprint in central regions of North America.

Converge Technology Solutions Corp. has achieved Platinum Partner status with HPE, the highest level in the HPE Partner Ready Program. This recognition reflects Converge's commitment to HPE's solutions, fulfilling rigorous requirements in sales, technical certifications, and competencies. The status will allow Converge to be featured on HPE's Partner Ready Portal and other tools, enhancing its visibility in the market. CEO Shaun Maine noted this achievement underscores their expertise in cloud and digital infrastructure, positioning Converge to better serve clients and leverage growth opportunities in digital transformation.

Converge Technology Solutions Corp. has secured approval to increase its ABL credit facility from $190 million to $300 million with a banking syndicate led by CIBC. In addition, J.P. Morgan Chase & Co. has been added to the syndicate. CEO Shaun Maine highlighted significant financial growth in 2021 and emphasized the importance of this credit increase for future investments, particularly in acquisitions. With nothing currently drawn, the additional $110 million will support Converge's growth strategy into 2022 and beyond.