Converge Approves Revised Arrangement with H.I.G. Capital
Deal News | Apr 03, 2025 | PR Newswire Cision Converge Technology Solutions Corp.
Converge Technology Solutions Corp. has agreed to a revised Arrangement Agreement with a subsidiary of H.I.G. Capital pertaining to the acquisition of all issued and outstanding shares of Converge. Under the amended terms, H.I.G. will purchase Converge’s shares at CAD 6.00 per share, an increase from the previously agreed CAD 5.50 per share. The decision follows an unsolicited, binding offer from a credible third party proposing a slightly higher price of CAD 6.10 per share, which Converge also considered. However, after careful deliberation, the board decided that the revised H.I.G. offer provides more certainty and aligns with the company's best interests. Consequently, Converge will cease any further discussions with the third party, and related legal proceedings initiated by H.I.G. against Converge will be permanently suspended. The extraordinary shareholder meeting to approve the arrangement has been scheduled for April 10, 2025.
Sectors
- Information Technology and Services
- Private Equity
Geography
- Canada – Converge Technology Solutions is based in Toronto and Gatineau, QC, making Canada a relevant geography for the article.
- United States – H.I.G. Capital, while acquiring a Canadian company, is a major private equity firm based in the United States.
Industry
- Information Technology and Services – Converge Technology Solutions operates in this sector providing IT and cloud solutions.
- Private Equity – H.I.G. Capital, being a private equity entity, fits within this classification given its involvement in acquisition activities.
Financials
- 6.00 CAD per share – Revised acquisition price offered by H.I.G. Capital for each Converge share.
- 6.10 CAD per share – The price offered in the amended binding offer by an unidentified third-party.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Converge Technology Solutions Corp. | Target | Company | A provider of IT and cloud solutions, Converge Technology Solutions is the target company in the acquisition agreement. |
| H.I.G. Capital | Buyer | Company | A private equity firm acquiring Converge Technology Solutions. |
| Third Party Bidder | Bidding Company | Company | An unidentified entity that submitted an unsolicited, albeit higher, acquisition offer for Converge. |