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Converge Technology Solutions Corp
Symbol CTS
Shares Issued 214,896,369
Close 2022-05-19 C$ 7.25
Recent Sedar Documents

Converge Technology to acquire Technology Integration

2022-05-19 09:58 ET - News Release

Mr. Shaun Maine reports

CONVERGE TECHNOLOGY SOLUTIONS CORP. TO ACQUIRE PC SPECIALISTS, INC. D/B/A TECHNOLOGY INTEGRATION GROUP

Converge Technology Solutions Corp. has signed definitive agreements to acquire PC Specialists Inc., doing business as Technology Integration Group (TIG). Headquartered in San Diego, Calif., with 20 offices across North America, TIG specializes in optimized performance solutions and critical business support.

From software and hardware procurement to discovery assessments, strategic planning, deployment, data centre optimization, information technology asset management and cloud computing, TIG offers custom-built IT solutions for clients around the globe, with a major presence in the United States and Canada. With over 20 branch locations, TIG serves a wide-reaching and diverse client base in enterprise, government, education and SMB (small and medium-sized business) markets. Always offering a personal, consultative approach to identifying and fulfilling organizations' specific computing needs, TIG customizes innovative technology that best fits any unique infrastructure requirement.

"TIG is elated to be joining forces with Converge," said Tom Janecek, chief executive officer and chief financial officer of Technology Integration Group. "We are extremely proud of our 40-plus-year history and have no doubt that our track record of success as a multinational service and solutions integrator will continue as part of Converge. We are excited for the strategic direction and vision of the company and look forward to a bright future for our employees, clients and business partners."

"Converge is excited to continue our strategy of growth and global expansion through the announced addition of Technology Integration Group to our portfolio of companies," stated Shaun Maine, CEO of Converge. "TIG brings strong industry expertise across state, local and education that we can leverage across North America and gives us additional presence in Canada, adding to our strength of offerings with the Canadian government. The combined strength of Converge and TIG's ability to serve our clients in markets around the world will present an exciting opportunity for us to continue reaching our clients and solving their solution needs wherever they may be."

PC Specialists generated gross revenue1 of approximately $423-million with an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $14.8-million for its most recently completed fiscal year ended Oct. 31, 2021. Consideration for the purchase consists of $74-million (U.S.) in cash to be paid at closing. Positive net working capital will also be paid out at closing. The purchase multiple is approximately 5.96 times adjusted EBITDA for the trailing 12-month period ended Oct. 31, 2021, after adjusting for positive working capital. The acquisition is expected upon closing to be immediately accretive to Converge, resulting in increased revenue and adjusted EBITDA.

PC Specialists marks the 31 acquisition announced by Converge or its affiliates 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.; Rednet AG; Vicom Infinity Inc.; Infinity Systems Software Inc.; LPA Software Solutions LLC; Opin Digital Inc; Paragon Development Systems Inc.; Visucom GmbH; 1CRM Systems Corp.; Interdynamix Systems; and Creative Breakthroughs Inc.

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 global solution approach delivers advanced analytics, application modernization, cloud, cybersecurity, digital infrastructure and digital workplace offerings to clients across various industries. The company supports these solutions with advisory, implementation and managed services expertise 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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