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, which represents significant premiums of about 56% and 57% over the closing price and the 30-day volume-weighted average price prior to the announcement. The transaction aims to provide immediate liquidity to shareholders while positioning Converge for long-term growth.

The Board of Directors of Converge unanimously approved the transaction after a special committee of independent directors recommended it as fair and in the company's best interests. Notably, shareholders holding 24% of Converge's outstanding shares have already signed voting support agreements for the deal.

Upon completion, Converge plans to delist its shares from public markets and cease being a reporting issuer under Canadian securities laws. The company will merge with Mainline Information Systems, LLC, another H.I.G.-owned entity, which specializes in IT solutions including hybrid cloud and cybersecurity services. This merger is expected to enhance the combined entity's ability to serve customers with a wider range of solutions.

Greg Berard, CEO of Converge, will lead the new organization, while Jeff Dobbelaere, President and CEO of Mainline, will serve as President. Both leaders expressed enthusiasm about the merger, highlighting the complementary strengths of their companies and the potential for growth in the IT market.

Aaron Tolson, Managing Director at H.I.G. Capital, emphasized Converge's understanding of technology trends and its reputation as a trusted advisor. He noted that the merger would create a differentiated offering in core data center infrastructure, networking, security, and hybrid cloud services.

The partnership is seen as a strategic move to enhance customer service and deliver innovative solutions in a rapidly evolving technology landscape. Berard remarked on the importance of providing comprehensive solutions to help clients succeed, while Dobbelaere highlighted the growth opportunities for employees and the expanded value delivered to customers.

Converge is set to release its preliminary Q4 FY2024 results on February 10, 2025, with expectations of strong performance in gross profit and Adjusted EBITDA. The acquisition marks a significant milestone for both companies as they aim to leverage their combined capabilities for future growth.