Converge Raises Share Offer in Amended Deal with H.I.G. Capital
Deal News | Apr 02, 2025 | PR Newswire Cision Converge Technology Solutions Corp.
Converge Technology Solutions Corp. has announced an amendment to its previous arrangement agreement with H.I.G. Capital, an affiliate of H.I.G. Capital will acquire all issued and outstanding common shares of Converge at an increased cash offer of C$6.00 per share, raised from the initial offer of C$5.50. This decision follows an unsolicited proposal from a third party that offered an equal bid per share and later a revised bid of C$6.10. Legal disputes arose as H.I.G. took action against Converge, claiming a breach of agreement when considering the third-party's proposal. In a strategic move, Converge's board accepted the amended offer from H.I.G., citing the certainty of the deal and the benefits to stakeholders. Shareholders are encouraged to vote in favor of the amended arrangement at an upcoming virtual meeting. The arrangement is anticipated to conclude on or about April 17, 2025.
Sectors
- Information Technology
- Private Equity
- Legal Services
Geography
- Canada – Converge Technology Solutions is headquartered in Canada, and the legal proceedings are taking place in the Ontario Superior Court of Justice.
- United States – H.I.G. Capital is a private equity firm based in the United States, indicating international dimensions to the agreement and acquisition process.
Industry
- Information Technology – Converge Technology Solutions operates as a provider of IT solutions across various sectors including cloud, cybersecurity, and digital infrastructure.
- Private Equity – H.I.G. Capital is a private equity firm involved in acquiring Converge Technology Solutions, representing significant activity in the private equity space.
- Legal Services – The involvement of legal proceedings between Converge and H.I.G Capital highlights the importance of legal services in the negotiation and amendment process of corporate dealings.
Financials
- C$6.00 per Common Share – The revised cash price per share agreed upon in the amended arrangement agreement between Converge and H.I.G. Capital.
- C$6.10 per Common Share – The price offered per share in the amended binding proposal by the third party.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Converge Technology Solutions Corp. | Target Company | Company | A Canadian IT and cloud solutions provider focused on delivering outcomes-driven solutions that address business challenges through technology. |
| H.I.G. Capital | Bidding Company | Company | A global private equity investment firm that is expanding its portfolio through the acquisition of Converge Technology Solutions. |
| Board of Directors of Converge | Decision Maker | People | The governing body that made the decision to accept the amended arrangement offer from H.I.G. Capital. |
| Third Party | Competing Bidder | Company | An unidentified credible entity that made a competitive acquisition proposal for Converge Technology Solutions. |
| Ontario Superior Court of Justice (Commercial List) | Legal Authority | Government | The court involved in the legal proceedings initiated by H.I.G. against Converge concerning contractual breaches. |