Unlocking Value: Converge Tech’s C$1.3B Buyout Delivers Impressive 56% Premium – A Game-Changing IT Services Merger!

Key Highlights:

• H.I.G. Capital is set to acquire Converge in an all-cash deal, offering immediate cash to shareholders. This move will position Converge for strategic growth.
• Shareholders will receive C$5.50 per share, with a premium of around 56% over the last closing price. This premium reflects the commitment to enhance shareholder value.
• The Board of Directors of Converge, after thorough review, believes this transaction is fair and beneficial for the Company.
• About 24% of Converge’s shareholders have pledged their support for this deal.

TORONTO and GATINEAU, QC, Feb. 7, 2025 /PRNewswire/ – Converge Technology Solutions Corp. (“Converge” or the “Company”) (TSX: CTS) (FSE: 0ZB) (OTCQX: CTSDF) has announced its agreement with H.I.G. Capital for an acquisition where H.I.G. will buy all common shares of Converge. This agreement includes a cash payout of C$5.50 per share for most shareholders, while certain shareholders may choose to roll over their shares into equity in H.I.G.

Post-acquisition, Converge will join Mainline Information Systems, LLC, which is also owned by H.I.G. Mainline is known for its expertise in IT solutions, including cloud services and cybersecurity. This combination aims to offer customers a wider range of services.

Aaron Tolson of H.I.G. Capital commented on the acquisition, praising Converge’s understanding of technology trends and its reputation for quality service. He believes this merger will enhance the offerings available to customers.

Greg Berard, CEO of Converge, expressed excitement about the partnership. He stated it provides significant value for shareholders and strengthens the Company’s capabilities to serve clients in a fast-evolving tech landscape.

The transaction, which requires shareholder approval, is expected to finalize in the second quarter of 2025. Additionally, Converge will announce its preliminary financial results for Q4 FY2024 on February 10, 2025.

Transaction Details
The Board, guided by a special committee of independent directors, has unanimously supported the transaction, viewing it as beneficial for the Company. Completion depends on shareholder votes at a special meeting, alongside regulatory and court approvals.

The deal includes a termination fee of C$34.4 million if certain conditions are triggered. H.I.G. is committed to making this acquisition work and is confident in securing the needed approvals. Converge will also pause its regular dividend until the transaction concludes.

In summary, this acquisition not only supports immediate returns for shareholders but also sets Converge on a path for sustained growth in the competitive IT market.

About Converge
Converge Technology Solutions Corp. is dedicated to transforming how businesses engage with IT. By offering solutions that prioritize human needs, Converge supports various industries through advanced technologies such as AI, cloud services, and digital infrastructure.

About H.I.G. Capital
H.I.G. Capital is a global investment firm managing $67 billion in capital. They focus on supporting middle-market companies, providing both equity and debt financing to drive growth.

About Mainline
Mainline specializes in IT solutions and consulting, offering services across different technology areas. Their expertise positions them strongly to deliver optimal business outcomes for their clients.