05:48:06 EDT Mon 15 Aug 2022
Enter Symbol
or Name
USA
CA



Login ID:
Password:
Save
Converge Technology Solutions Corp
Symbol CTS
Shares Issued 210,457,581
Close 2021-12-01 C$ 10.85
Recent Sedar Documents

Converge Technology unit acquires Opin Digital

2021-12-01 16:18 ET - News Release

Mr. Don Cuthbertson reports

CONVERGE TECHNOLOGY SOLUTIONS CORP. ANNOUNCES PORTAGE CYBERTECH INC. ACQUIRES OPIN

Converge Technology Solutions Corp.'s 53-per-cent-owned subsidiary, Portage CyberTech Inc., has acquired Opin Digital Inc. This is the 25th acquisition made by Converge or its affiliates and is the first acquisition made by Portage CyberTech. Opin is a full-service Canadian digital agency focused on designing and building digital Web, mobile and app experiences to support strategic digital service goals of government and enterprise customers. Opin will become a subsidiary of recently established Portage CyberTech, where it will also deliver modern privacy and reliable security solutions to protect data and manage digital assets.

Headquartered in Ontario with an additional presence in New York, Opin has executed over 200 enterprise projects and has served more than 85 government and public sector clients. Portage and global security experts recognize hacker attacks can often target legacy IT (information technology) systems. In response, Portage CyberTech's market strategy includes Opin's globally adopted, open-source solution. Opin's reliable Drupal back-end framework and WebOS approach can modernize these legacy systems, creating more secure digital assets in less time than other approaches. In addition, Opin can serve as an extension of overworked security teams to better manage security module updates in order to protect systems and data.

"Understanding our customers' needs and providing the right solution is what has driven our growth over the last 10 years. We know the customers we serve support the same growth market as Portage and we look forward to combining our digital agency solutions with Portage CyberTech's digital transformation expertise. We are passionate about extending our reach with Portage CyberTech and the greater Converge teams during this exciting time in our industry," stated Chris Smith, chief executive officer of Opin.

"Converge is tremendously excited to bring in Opin as part of Portage CyberTech," stated Don Cuthbertson, chief technology officer of Converge and CEO of Portage CyberTech. "With more than 150 countries around the world relying on Drupal for government and intergovernmental agency sites, as well as the very high percentage of public sector organizations using Drupal for digital transformation, we consider this acquisition to be a highly strategic gateway for significant growth of our Portage Trust platform. It is also my belief this acquisition will bolster the efforts being made by the government of Quebec and Connexite in Gatineau, establishing the region as a major digital identity and cybersecurity innovation hub."

Portage CyberTech combined 100 per cent of Converge's Becker-Carroll and Vivvo business units to create a new SaaS (software as a service) entity focused on cybersecurity. In October, 2021, Converge announced the completion of a $35-million private placement for Portage CyberTech, of which Converge owns approximately 53 per cent, based on a $75-million valuation. At that time, it reported its intention to use the net proceeds for acquisitions and other general corporate purposes and the Opin acquisition is the first acquisition under the new Portage entity.

Opin had trailing 12-month revenue of approximately $3.6-million for the period ending Sept. 30, 2021. The purchase price consisted of the following: (i) $4.67-million in cash at closing; (ii) up to an aggregate of $1.56-million in earnout payments for the two years following closing of the acquisition based on the achievement of certain milestones.

Opin marks the 25th acquisition completed by Converge or its affiliates since October, 2017. Converge's family of companies also includes Corus Group LLC; Northern Micro Inc.; 10084182 Canada Inc. (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.; Rednet AG; Vicom Infinity Inc.; Infinity Systems Software Inc.; and LPA Software Solutions LLC.

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.

© 2022 Canjex Publishing Ltd. All rights reserved.