Converge Technology Solutions to Merge with Mainline Under H.I.G. Capital
Toronto,Canada,– February 7, 2025 – H.I.G. Capital announces the purchase of Converge Technology Solutions Corp. for an estimated C$1.3 billion. Each shareholder will be paid C$5.50 which represents an outrageous 56% increase from the closing share price per the 6th of February, 2025.
This purchase will enable Converge to Integrate with Mainline Information Systems which apart of an H.I.G subsidiary focuses on server and hybrid cloud solutions, cyber security, storage, networking, as well as other services.
The united group seeks to strengthen its market position in the domains of cyber security, cloud, and infrastructure.
The CEO of Converge, Greg Berard will become the CEO of the entire Integrated business while the current President and CEO of Mainline, Jeff Dobbelaere, will become the new President of the company.
While speaking with Aaron Tolson, Managing Director at H.I.G. Capital,said,
“Converge is very well positioned in understanding technology and IT markets and where they are headed.” He mentioned,
“The combined company will bring a breadth and depth of technology and services capabilities to its customers and OEM partners that exceed what is offered in the core data center infrastructure, networking, security, and hybrid cloud.”
The quoted transaction has been approved and accepted by Converge’s Board Of Directors which acts as the final decision making authority within the company and came after a suggestion from special committee independent directors which was made unanimously.
24 percent of the shareholders of Converge have entered into voting support agreements to approve the transaction.
On closing, Converge is planning to remove their common shares from all other public markets and no longer be a reporting issuer to the Canadian securities commission.
The alignment of business strategies positions the company to meet the challenges of the complex technological marketplace that continues to evolve and grow by practicing IT services amalgamation which has been gaining popularity.
Source:https://convergetp.com/2025/02/07/converge-technology-solutions-to-be-acquired-by-h-i-g-capital/
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