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Converge Technology Solutions Corp
Symbol CTS
Shares Issued 162,905,081
Close 2021-04-01 C$ 5.97
Market Cap C$ 972,543,334
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Converge Technology acquires Dasher Technologies

2021-04-01 11:49 ET - News Release

Mr. Greg Berard reports

CONVERGE TECHNOLOGY SOLUTIONS CORP. ACQUIRES DASHER TECHNOLOGIES, INC.

Converge Technology Solutions Corp. has completed the acquisition of Dasher Technologies Inc., an IT solution provider headquartered in Silicon Valley that has architected, implemented and managed innovative solutions that digitally transform businesses for over 20 years. Dasher is the 19th acquisition completed by Converge.

Dasher brings an extensive resume of success across multiple industries. Most notably, Dasher is the fifth-largest HPE partner in North America and was recognized as HPE's United States solution provider of the year in 2018. Dasher has also received various accolades from industry publications such as the Silicon Valley Business Journal and CRN. The introduction of Converge's rapidly expanding cloud and managed services offerings into Dasher's large and growing list of top-tier clients will provide Dasher's current and new clients with the ability to take advantage of cloud computing and remote working environments. The combined strength of both Converge and Dasher's teams of experts and industry partnerships will further support all clients.

"Dasher is proud to join the Converge family as our companies share core values of integrity, respect, hard work and client first," said John Vigliecca, chief executive officer of Dasher Technologies. "We are impressed with the strategy and vision Converge has brought to the industry and we know our clients, partners and employees will benefit from the increased resources Dasher can now provide. We take IT personally and so does Converge."

"Dasher is a key addition to the Converge team and gives us an increased presence on the West Coast to bolster our existing business and partnerships. The Dasher team brings the technical expertise, thought leadership, strong vendor partnerships and client relationships that we look for in our growing family of companies," said Greg Berard, president of Converge Technology Solutions. "The incorporation of Dasher into the Converge organization advances the company's 2021 focus on completing further strategic acquisitions and broadening resource development. This continued growth allows us to constantly offer our clients the best and most-innovative solutions and technologies to meet their ever-changing business needs."

Dasher generated gross revenue and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $220-million and $12.6-million, respectively, for the trailing 12-month period ended Feb. 28, 2021. Consideration for the purchase consisted of $39.5-million (U.S.) in cash paid at closing and notes payable of $9-million (U.S.) in aggregate, payable over three years. Positive net working capital was also paid out at closing. The purchase price represents a multiple of approximately 4.8 times adjusted EBITDA for the trailing 12-month period ended Feb. 28, 2021. The cash portion of the purchase price was financed by Converge's recently completed bought deal financing. The acquisition is expected to be immediately accretive to Converge, resulting in increased revenue and adjusted EBITDA.

Dasher Technologies marks the 19th acquisition completed by Converge since October, 2017. Converge's family of companies also includes Corus Group LLC; Northern Micro Inc.; 10084182 Canada Inc. (operating as Becker-Carroll); Key Information Systems Inc.; BlueChip Tek Inc.; Lighthouse Computer Systems Inc.; Software Information Systems LLC; Nordisk Systems Inc.; Essex Technology Group Inc.; Datatrend Technologies Inc.; VSS LLC; Solutions PCD Inc.; Unique Digital Inc.; Workgroup Connections Inc.; Vivvo Application Studios Ltd.; Vicom Computer Services Inc.; CarpeDatum LLC; and Accudata Systems Inc.

About Converge Technology Solutions Corp.

Converge Technology Solutions is a North American software-enabled, hybrid IT solution provider focused on delivering industry-leading solutions and services. Converge's regional sales and services organizations deliver advanced analytics, cloud, cybersecurity and managed services offerings to clients across various industries. The company supports these solutions with talent expertise and digital infrastructure offerings across all major IT vendors in the marketplace. This multifaceted approach enables Converge to address the unique business and technology requirements for all clients in the public and private sectors.

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