Converge Acquired by H.I.G. Capital: A Strategic Move
Deal News | Feb 11, 2025 | PR Newswire Cision Converge Technology Solutions Corp.
H.I.G. Capital has announced its impending acquisition of Converge Technology Solutions Corp in a cash transaction valued at approximately CAD 1.3 billion, providing immediate liquidity to shareholders with a premium of 56-57% over recent share prices. Targeted for completion in 2025, the merger aligns with Converge’s long-term growth strategy, facilitating its amalgamation with Mainline Information Systems, an H.I.G.-owned entity. The combined company will expand its offerings in cybersecurity, cloud, and digital infrastructure, benefiting from strategic synergies. The Converge board, advised by Canaccord Genuity and Origin Merchant Partners, has unanimously approved the deal post a rigorous competitive negotiation process.
Sectors
- Technology
- Private Equity
- Corporate Finance
Geography
- Canada – Converge Technology Solutions is based in Toronto and Gatineau, reflecting its primary geographical location.
- United States – H.I.G. Capital is based in Miami and Mainline Information Systems in Florida, indicating a strong U.S. geographical connection.
Industry
- Technology – The acquisition involves Converge Technology Solutions, a provider of IT and cloud-based solutions, which directly falls under the technology industry.
- Private Equity – The acquiring company, H.I.G. Capital, is a private equity firm engaging in this buyout deal, highlighting its role within the private equity sector.
- Corporate Finance – The transaction involves significant financial advisory input and evaluation, categorizing it under corporate finance activities.
Financials
- 1.3 billion CAD – The acquisition price, valuing Converge at approximately this amount in enterprise value.
- 5.50 CAD – Per share cash payment offered to Converge shareholders, representing a significant premium.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Converge Technology Solutions Corp. | Target Company | Company | A provider of IT and cloud solutions, aimed at strategic growth through this acquisition. |
| H.I.G. Capital | Acquiring Company | Company | A private equity and investment firm leading this acquisition to align Converge with its portfolio company, Mainline. |
| Mainline Information Systems, LLC | Portfolio Company | Company | An H.I.G.-owned entity that will merge with Converge post-acquisition, specializing in diversified IT solutions. |
| Canaccord Genuity Corp. | Financial Advisor | Company | Provided leading financial advisory services to Converge during the deal. |
| Origin Merchant Partners | Financial Advisor | Company | Acted as an independent financial advisor, providing fairness opinion in the transaction. |
| Weil, Gotshal & Manges LLP | Legal Advisor for H.I.G. | Company | Provided legal advisory services to H.I.G. Capital in the acquisition process. |
| Stikeman Elliott LLP | Legal Advisor for H.I.G. | Company | Offered additional legal support to H.I.G. Capital. |