Converge Technology Solutions Prepares for Special Meeting to Finalize Acquisition by H.I.G. Capital
On March 16, 2025, Converge Technology Solutions Corp. (TSX: CTS) revealed that it has filed and begun distributing its management information circular concerning an upcoming extraordinary general meeting. This meeting is essential for shareholders to approve the company's acquisition plan by H.I.G. Capital. The circular is accessible on the Converge SEDAR+ profile and its website, indicating a transparent approach to the acquisition process.
The announcement comes alongside a significant judicial endorsement from the Ontario Superior Court of Justice, affirming the assembly of the shareholders' meeting to deliberate on this acquisition. Notably, the expected completion of the acquisition hinges upon a favorable vote by the shareholders on the proposed terms outlined in the circular. The recommended cash payment of CAD 5.50 per share represents a substantial premium of approximately 56% over the closing share price prior to the announcement of the acquisition on February 6, 2025.
The proposed arrangement values Converge at around CAD 1.3 billion and aims to offer shareholders immediate liquidity, thereby shielding them from market fluctuations and operational risks in the long term. With the deadline for voting looming, shareholders are urged to participate actively in the vote, which will be held virtually at 11:00 AM (Toronto time) on April 10, 2025. Only those registered by the close of business on March 10, 2025, will have the right to participate and vote.
The board of Converge unanimously advises shareholders to vote in favor of the acquisition, citing the careful consideration of multiple factors and potential benefits to stakeholders. The rationale behind this decision stems from thorough consultations with financial advisors, evaluations of competitive offers, and strategic risk assessments that favor a move towards the H.I.G. Capital partnership. This strategic choice emerges from ongoing investigations and evaluations that commenced in 2022, highlighting the intensive process undertaken to achieve the best outcome for shareholders.
Converge's administrative team emphasizes the reliability and immediate liquidity offered by the acquisition proposal amid a climate of economic uncertainties and the volatility of the tech industry. Furthermore, the assurance of prompt financial returns mitigates any long-term risks associated with operational disruptions and market conditions. The Converge board maintains that without this acquisition, it could be challenging to secure comparable value for the shareholders in future business endeavors.
Interested stakeholders can find further details regarding the acquisition and vote procedures in the management information circular. Shareholders with questions or needing assistance with the voting process can reach out to the Laurel Hill Advisory Group. This agreement with H.I.G. not only symbolizes a pivotal shift in Converge's operational strategy but also aims to capitalize on future growth potential underpinned by innovative IT solutions and evolving market demands.
Converge Technology Solutions Corp. has carved out a space for itself in the IT and tech industry since its establishment in 2017, pioneering the delivery of tailored, results-driven solutions. As a service-focused, software-integrated provider, the company continues to evolve under its AIM method: Advise, Implement, Manage, ensuring that its strategies align with client needs on both local and global scales. Converge aspires to redefine the landscape of IT, facilitating innovation through advanced analytics, cloud computing, and digital infrastructure—proving foundational for businesses looking to navigate a rapidly changing market.
As the date of the special meeting approaches, the proceedings stand as a testament to the commitment of Converge Technology Solutions to safeguard shareholder interests while positioning itself strategically for enduring success and growth in an ever-competitive arena.
The announcement comes alongside a significant judicial endorsement from the Ontario Superior Court of Justice, affirming the assembly of the shareholders' meeting to deliberate on this acquisition. Notably, the expected completion of the acquisition hinges upon a favorable vote by the shareholders on the proposed terms outlined in the circular. The recommended cash payment of CAD 5.50 per share represents a substantial premium of approximately 56% over the closing share price prior to the announcement of the acquisition on February 6, 2025.
The proposed arrangement values Converge at around CAD 1.3 billion and aims to offer shareholders immediate liquidity, thereby shielding them from market fluctuations and operational risks in the long term. With the deadline for voting looming, shareholders are urged to participate actively in the vote, which will be held virtually at 11:00 AM (Toronto time) on April 10, 2025. Only those registered by the close of business on March 10, 2025, will have the right to participate and vote.
The board of Converge unanimously advises shareholders to vote in favor of the acquisition, citing the careful consideration of multiple factors and potential benefits to stakeholders. The rationale behind this decision stems from thorough consultations with financial advisors, evaluations of competitive offers, and strategic risk assessments that favor a move towards the H.I.G. Capital partnership. This strategic choice emerges from ongoing investigations and evaluations that commenced in 2022, highlighting the intensive process undertaken to achieve the best outcome for shareholders.
Converge's administrative team emphasizes the reliability and immediate liquidity offered by the acquisition proposal amid a climate of economic uncertainties and the volatility of the tech industry. Furthermore, the assurance of prompt financial returns mitigates any long-term risks associated with operational disruptions and market conditions. The Converge board maintains that without this acquisition, it could be challenging to secure comparable value for the shareholders in future business endeavors.
Interested stakeholders can find further details regarding the acquisition and vote procedures in the management information circular. Shareholders with questions or needing assistance with the voting process can reach out to the Laurel Hill Advisory Group. This agreement with H.I.G. not only symbolizes a pivotal shift in Converge's operational strategy but also aims to capitalize on future growth potential underpinned by innovative IT solutions and evolving market demands.
Converge Technology Solutions Corp. has carved out a space for itself in the IT and tech industry since its establishment in 2017, pioneering the delivery of tailored, results-driven solutions. As a service-focused, software-integrated provider, the company continues to evolve under its AIM method: Advise, Implement, Manage, ensuring that its strategies align with client needs on both local and global scales. Converge aspires to redefine the landscape of IT, facilitating innovation through advanced analytics, cloud computing, and digital infrastructure—proving foundational for businesses looking to navigate a rapidly changing market.
As the date of the special meeting approaches, the proceedings stand as a testament to the commitment of Converge Technology Solutions to safeguard shareholder interests while positioning itself strategically for enduring success and growth in an ever-competitive arena.
Topics Financial Services & Investing）
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