Converge Technology Solutions Corp. has announced a definitive restructuring agreement with an affiliate of H.I.G. Capital, under which H.I.G. will acquire all issued and outstanding common shares of Converge. As per the agreement, shareholders will receive C$5.50 per common share in cash, except for those shareholders participating in share rollover agreements. This transaction values Converge at an enterprise value of approximately C$1.3 billion. Upon completion, the company plans to delist its common shares from all public markets and cease reporting under Canadian securities laws.
As part of this transaction, Converge will merge with Mainline Information Systems, LLC, an H.I.G.-owned entity based in Tallahassee, Florida. Mainline is a leading IT solutions provider specializing in enterprise server infrastructure, hybrid cloud, cybersecurity, data storage, and network security solutions, along with professional and managed services. The integration of Converge and Mainline will enhance service offerings, providing customers with a more comprehensive suite of technology solutions in key areas such as cloud computing, cybersecurity, and digital infrastructure.
The combined organization will be led by a highly experienced management team that reflects the expertise of both companies. Following the transaction, Converge’s CEO, Greg Berard, will assume the role of CEO of the newly integrated business, while Mainline’s President and CEO, Jeff Dobbelaere, will take on the position of President.
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“Converge stands out as an organization that understands where technology trends are headed in the IT market and has aligned its business accordingly, and has a proven reputation as a trusted advisor to its customers,” said Aaron Tolson, Managing Director of H.I.G. Capital. “We are excited to merge Converge with H.I.G.-owned Mainline, a company that has advised IT decision-makers in managing their most critical workloads for decades. The combined company will bring a breadth and depth of technology and services capabilities to its customers and OEM partners that differentiate themselves in the areas of data center infrastructure, networking, security, and hybrid cloud.”
“Converge is proud to begin a new chapter alongside H.I.G. Capital,” said Greg Berard, CEO of Converge. “This alliance not only secures significant value for our shareholders but also lays the foundation for improving the way we serve our customers. As technology continues to transform industries around the world, delivering comprehensive, forward-thinking solutions is vital to helping our customers succeed. We are excited to continue leading the way as a transformative force in the IT industry.”
“We are excited to join forces with Converge as we begin the next phase of our growth journey,” said Jeff Dobbelaere, President and CEO of Mainline. “Our expertise in hybrid cloud, on-premises infrastructure, cybersecurity, and software solutions complements Converge’s established expertise. Together, we are poised to create significant growth opportunities for our employees and enhance the value we deliver to customers by leveraging our combined capabilities to expand our service offerings and provide the most in-demand solutions in the market.”