Converge Technology Solutions Moves Forward with H.I.G. Capital Acquisition Approval Process

Converge Technology Solutions Advances Acquisition by H.I.G. Capital

Converge Technology Solutions Corp. has recently taken major steps toward finalizing its acquisition by H.I.G. Capital. With a detailed management information circular now filed and disseminated, the company prepares for a special shareholder meeting to seek approval for this significant transaction. This acquisition represents a remarkable opportunity for Converge, aiming to enhance its strategic capabilities and expand its market presence, valued at approximately C$1.3 billion.

The management information circular is publicly accessible through Converge's profile on SEDAR+ and their official website, aligning with their dedication to transparency and shareholder engagement. The circular contains comprehensive details regarding the acquisition agreement and its strategic significance, aiming at informing shareholders before they convene for a decisive vote.

Key Details of the Acquisition

The arrangement agreement, established on February 6, 2025, outlines H.I.G. Capital's purchase to acquire all outstanding shares for a cash consideration of C$5.50 per share. This figure reflects approximately a 56% premium compared to the closing price on the Toronto Stock Exchange the same day. Such a premium conveys both immediate liquidity and significant value to shareholders, showcasing the benefits of the proposed arrangement.

Additionally, Converge’s Board of Directors unanimously recommends that shareholders approve this arrangement. Their decision comes after thorough consultations with legal and financial advisors, examining various alternatives and potential benefits. The company anticipates that this acquisition will not only ensure immediate value for its shareholders but also eliminate long-term execution risks associated with standalone operations.

Virtual Meeting Scheduled

Converge has scheduled the shareholder meeting for April 10, 2025, at 11:00 a.m. Toronto time, to be held virtually. Shareholders of record as of March 10, 2025, will have the opportunity to participate and vote online. This format is designed to ensure broader accessibility, allowing all eligible stakeholders to engage directly in the decision-making process regarding the future trajectory of the company.

The arrangement’s completion is anticipated around April 17, 2025, pending that all regulatory and shareholder approvals are secured in due time. By securing a favorable outcome at the meeting, Converge aims to position itself advantageously in the competitive technology solutions landscape, enhancing its capacity to provide innovative services driven by advanced technologies.

A Comprehensive Evaluation Process

To arrive at this arrangement, the Board and a special committee of independent directors engaged in an extensive evaluation process, exploring the full spectrum of available options to maximize shareholder value. The committee reached out to a wide network of potential partners initially identified during a strategic review process in 2022. This led to competitive offers, affirming the attractiveness of the arrangement with H.I.G. Capital.

Throughout their negotiations, the company has prioritized establishing terms that not only meet market standards but also include provisions for potential superior proposals, showcasing their commitment to achieving the best possible outcome for their shareholders.

In conclusion, Converge Technology Solutions is embarking on a transformative phase characterized by strategic consolidation and enhanced operational capacity. With the backing of H.I.G. Capital, the company is poised to innovate and provide cutting-edge solutions, reinforcing its position not only within Canada but on a global scale. Shareholders are highly encouraged to familiarize themselves with the details outlined in the circular, engaging fully in the forthcoming vote to influence the strategic direction of their company.

For any inquiries regarding the vote or the acquisition process, shareholders can reach out to Laurel Hill Advisory Group, ensuring every stakeholder is well-informed and equipped to participate in this pivotal moment in Converge’s growth journey.