Converge Acquired by H.I.G. Capital in C$1.3 Billion Deal

Deal News | Feb 07, 2025 | PR Newswire Cision Converge Technology Solutions Corp.

H.I.G. Capital has announced its acquisition of Converge Technology Solutions Corp. in an all-cash deal valued at approximately C$1.3 billion. Shareholders will receive C$5.50 per share, marking a significant premium over recent trading prices. Converge is expected to delist from public markets once the deal is finalized. The acquisition will see Converge join H.I.G.-owned Mainline Information Systems to expand service offerings in IT solutions. The transaction received unanimous approval from a special committee and the Board of Directors, with substantial shareholder support secured. The deal is scheduled to close in the second quarter of 2025, subject to various approvals.

Sectors

Technology
Private Equity

Geography

Canada – Converge Technology Solutions is based in Canada, and the transaction will result in delisting from Canadian markets.
United States – H.I.G. Capital is based in the United States, with Mainline Information Systems headquartered in Florida.

Industry

Technology – Converge Technology Solutions and Mainline Information Systems operate in the technology sector, providing IT and cloud solutions.
Private Equity – H.I.G. Capital is a private equity firm acquiring Converge Technology Solutions.

Financials

C$1.3 billion – Enterprise value of Converge Technology Solutions in the acquisition.
C$5.50 – Cash per share offered to Converge shareholders.
C$34.4 million – Termination fee payable by Converge under certain conditions.
$165 - $178 million – Expected gross profit range for Q4 FY2024.
$36 - $47 million – Expected Adjusted EBITDA range for Q4 FY2024.
7.4x – Enterprise value to Adjusted EBITDA multiple implied by the transaction.
$67 billion – Capital under management by H.I.G. Capital.

Participants

Name	Role	Type	Description
Converge Technology Solutions Corp.	Target	Company	A Canadian IT and cloud solutions provider set to be acquired by H.I.G. Capital.
H.I.G. Capital	Buyer	Company	A private equity firm acquiring Converge Technology Solutions.
Mainline Information Systems, LLC	Other Company	Company	An H.I.G. Capital-owned company that will integrate with Converge post-acquisition.
Greg Berard	Converge CEO	Person	CEO of Converge who will lead the combined business post-acquisition.
Jeff Dobbelaere	Mainline CEO	Person	CEO of Mainline who will become President of the combined entity.
Aaron Tolson	Managing Director at H.I.G. Capital	Person	Involved in overseeing the acquisition.
Canaccord Genuity Corp.	Financial Advisor	Company	Lead financial advisor to Converge and its Board.
Houlihan Lokey Capital, Inc.	Financial Advisor	Company	Financial advisor to the Special Committee.
Origin Merchant Partners	Independent Financial Advisor	Company	Provided a fairness opinion to the Special Committee.
Goodmans LLP	Legal Advisor	Company	Legal counsel to the Company.
Weil, Gotshal & Manges LLP	Legal Advisor	Company	Legal advisors to H.I.G.
Stikeman Elliott LLP	Legal Advisor	Company	Legal advisors to H.I.G.