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Converge Technology Solutions Corp
Symbol CTS
Shares Issued 185,905,081
Close 2021-08-31 C$ 11.97
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Converge closes Vicom, Infinity Systems acquisition

2021-08-31 17:22 ET - News Release

An anonymous director reports

CONVERGE TECHNOLOGY SOLUTIONS CORP. COMPLETES ACQUISITION OF VICOM INFINITY AND INFINITY SYSTEMS SOFTWARE

Converge Technology Solutions Corp. has closed its previously announced acquisition of Vicom Infinity and Infinity Systems Software.

Vicom Infinity, a world-class IBM mainframe solutions provider, focuses on its philosophy of combining proven IT technology with the infinite possibilities of innovative thinking to transform IT functionality. Vicom Infinity's products and uncompromising service have helped clients successfully transform their IT enterprise systems.

Infinity Systems Software has been a leading supplier of software and services for IBM platforms for more than 20 years. Sister company to Vicom Infinity, Infinity Systems Software is proficient in IBM mainframe, and offers a wide range of services including IT consulting, applications development, managed services, legacy modernization, disaster recovery and customization.

Vicom Infinity and Infinity Systems Software together generated revenue of approximately $111.8-million and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $8.5-million for the trailing 12-month period ended June 30, 2021. Aggregate consideration for the purchases consisted of $15.0-million (U.S.) (approximately $18.9-million) in cash paid at closing. The purchase multiple for the transaction was approximately 2.2 times adjusted EBITDA for the trailing 12-month period ended June 30, 2021. The cash portion of the purchase price was financed by Converge's recently completed bought deal public offering of common shares. The acquisition is expected to be immediately accretive to Converge, resulting in increased revenue and adjusted EBITDA.

Vicom Infinity and Infinity Systems Software marks the 22nd and 23rd acquisitions 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, Accudata Systems Inc., Dasher Technologies Inc., ExactlyIT Inc. and REDNET AG.

About Converge Technology Solutions Corp.

Converge Technology Solutions is a software-enabled IT and cloud solutions provider focused on delivering industry-leading solutions and services. Converge's regional sales and services organizations deliver advanced analytics, cloud and cybersecurity offerings to clients across various industries. The company supports these solutions with managed services, digital infrastructure and talent expertise 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.

About Vicom Infinity and Infinity Systems Software

Vicom Infinity provides processing solutions for high-availability environments to ensure seamless IT transformation development. Vicom Infinity architects, implements and supports customized solutions that fit the unique needs of each specific client, and is widely known for its expertise in optimizing legacy investments while introducing new technologies and capabilities. Infinity Systems Software, sister company to Vicom Infinity, has been a leading software supplier and services provider for IBM platforms for more than 20 years. Infinity Systems Software is highly skilled in IBM mainframe environments, from legacy systems to IBM's sophisticated System Z mainframes, including Linux-based platforms.

Together, Vicom Infinity and Infinity Systems Software bring a wealth of experience and expertise in IBM data centre environments. By combining technology tools and business objectives, both organizations jointly deliver unique insight into IBM's technology road map and help clients find the right strategy to achieve business success.

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