17:59:01 EDT Sun 07 Aug 2022
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or Name

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Converge Technology Solutions Corp
Symbol CTS
Shares Issued 210,457,581
Close 2021-11-10 C$ 10.73
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Converge Tech earns $4.59-million in Q3 2021

2021-11-10 17:36 ET - News Release

Mr. Shaun Maine reports


Converge Technology Solutions Corp. has provided its financial results for the three and nine months ended Sept. 30, 2021. All figures are in Canadian dollars unless otherwise stated.

Q321 Highlights

  • Third quarter revenue increased 93% over last year to $367.3 million
  • Gross profit increased 60% over last year to $83.8 million
  • Adjusted EBITDA increased 29% to $18.9 million from $14.6 million last year
  • Record cashflow generated from operations of $48.1 million; an increase of 86% from $25.9 million compared to last year
  • ARR from managed services increased by 34% to $81.1 million from $60.7 million last year
  • Completed acquisition of REDNET AG, an IT service provider headquartered in Mainz, Germany marking the Company's official expansion into Europe
  • Closed the previously announced acquisitions of Vicom Infinity, Inc. and Infinity Systems Software -- two world class providers of IBM mainframe solutions and IBM software and services
  • Announced as Ingram Micro's Blue Series Partner of the Year and CORE Partner of the Year for North America; Received Ingram Micro Cloud Reseller of the Year for the second consecutive year; Secured the 2021 North American Microsoft Surface Reseller of the Year; and Ranked fourteenth on CRN's 2021 Fast Growth 150 List
  • Closed $259 million equity financing at $10.55 per common share in September 2021
  • Added to the S&P/TSX Composite Index effective prior to market open on Monday, September 20, 2021

Subsequent to Quarter

  • Completed the acquisition of LPA Software Solutions, a provider of business analytics and professional services in analytics, data science, artificial intelligence, financial performance management, data governance, data integration, location analytics, and data sets
  • Announced a new Google Cloud Marketplace Solution allowing Converge to offer managed services to IBM and Google clients across North America and Europe
  • Achieved AWS Migration Competency status recognizing the Company's ability to provide proven technology and expertise to help clients successfully move to AWS
  • Closed a $35M non-brokered private placement to Converges' recently formed cybersecurity-focused SaaS entity, Portage CyberTech Inc.

"Converge continues to execute on all aspects of its strategy and we are extremely enthusiastic to have closed our platform acquisition in Europe. The Company continues to invest in talent and expand its service capabilities to its customers across North America and Europe, as reflected in our very impressive recurring revenue managed services growth," stated Shaun Maine, CEO of Converge. "Additionally, the Company ended the quarter with $210 million of cash on-hand driven by extremely strong free cash generation from our business, with $190 million in available capacity under our ABL credit facility."

Conference Call Details:

  • Date: Thursday, November 11th, 2021
  • Time: 8:00 AM Eastern Time

Participant Dial-in Numbers:

  • Toll Free - North America (+1) 888 708 0720
  • Toll Free - International (929) 517 9011
  • Germany - 0800 181 5287
  • United Kingdom - 0800 028 8438
  • Conference ID: 1936798

Recording Playback Numbers:

  • Toll Free - (855) 859 2056
  • Alternative Number - (800) 585 8367
  • Passcode: 1936798
  • Expiry Date: November 18th, 2021

A live audio webcast and archive of the conference call will be available by visiting the Company's website. Please connect at least 15 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast.

About Converge

Converge Technology Solutions Corp. is a software-enabled IT & 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 multi-faceted approach enables Converge to address the unique business and technology requirements for all clients in the public and private sectors.

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