H.I.G. Capital Snaps Up Converge Technology: Details

Converge Technology Solutions CTSDF has agreed to be acquired by an affiliate of H.I.G. Capital for C$5.50 per share in cash, valuing the company at C$1.3 billion (~$909 million).

The deal price represents approximately 56% and 57% respective premiums to the closing price and 30-day volume weighted average price of the shares on the TSX on February, 6 2025.

Upon completion, Converge plans to delist from public markets and cease reporting under Canadian securities laws, marking a significant transition for the company.

As part of the transaction, Converge will merge with H.I.G.-owned Mainline Information Systems, expanding its offerings in cybersecurity, cloud computing, and digital infrastructure.

H.I.G. Capital is a global alternative investment firm with $67 billion of capital under management.

Following the closing, Converge executive chief Greg Berard will serve as Chief Executive Officer of the combined business and Mainline executive chief Jeff Dobbelaere will serve as President.

The agreement includes a C$34.4 million termination fee if Converge exits the agreement for a better offer.

During the transaction period, Converge will suspend its regular quarterly dividend. Directors, executives, and key shareholders holding 24% of shares have signed voting agreements in support of the deal.

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