HIG to Merge Converge With US Peer in $908 Million Deal

Bloomberg
07 Feb

(Bloomberg) -- HIG Capital LLC will buy Converge Technology Solutions Corp. in a C$1.3 billion ($908 million) deal that will combine the IT and cloud computing company with a US rival.

Converge will merge with Tallahassee, Florida-based Mainline Information Systems LLC, which is also owned by HIG, the companies said in a statement on Friday. The private equity firm will pay C$5.50 per share in cash for Converge.

Mainline and Converge offer complimentary products and services, the statement says. The combined company will be able to offer a broader range of products in cybersecurity, cloud computing and digital infrastructure. 

The deal is a premium of 56% to Converge’s closing price on Feb. 6, the statement says. It values the Toronto-based company below the peak market capitalization of C$2.7 billion it reached in Sept. 2021.

Converge expects its gross profit for the fourth quarter to be at the high end of its previously provided range. The deal is expected complete in the second quarter of 2025.

(Updates with more details from the release.)

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