Converge Technol - CTSDF STOCK NEWS

Converge Technology Solutions has announced its acquisition by H.I.G. Capital in an all-cash transaction valued at approximately C$1.3 billion. Shareholders will receive C$5.50 per share, representing a 56% premium to the closing price on February 6, 2025. The transaction has received unanimous board approval and is supported by shareholders holding 24% of outstanding shares.

Following the acquisition, Converge will merge with H.I.G.-owned Mainline Information Systems, creating a combined entity offering broader IT solutions in cybersecurity, cloud, and digital infrastructure. Greg Berard, Converge's CEO, will lead the combined business as CEO, while Mainline's CEO Jeff Dobbelaere will serve as President.

The transaction is expected to close in Q2 2025, subject to shareholder approval and regulatory clearances. Converge also announced that its Q4 FY2024 results are expected to be at the high end of previous guidance, with gross profit of $165-178 million and Adjusted EBITDA of $36-47 million.

Converge Technology Solutions (TSX: CTS) (OTCQX: CTSDF) has announced a change in its December 2024 dividend payment date. The company will pay its previously announced dividend of $0.015 per common share on December 27, 2024, instead of December 28, 2024, due to the holiday schedule. The record date remains December 10, 2024. This dividend is based on the company's financial results for the three and nine months ended September 30, 2024.

Converge Technology Solutions Corp. (TSX: CTS) (OTCQX: CTSDF) has announced a multi-year partnership with Tony Stewart Racing (TSR) as an associate sponsor in the NHRA Mission Foods Drag Racing Series. Converge will provide data analytics, visualization, and cloud storage services to TSR's Top Fuel and Matt Hagan's Funny Car teams. The partnership will officially begin at the 2025 NHRA Gatornationals in Gainesville, Florida, from March 6-9. This marks Converge's first venture into motorsports partnership and marketing, building upon their previous collaboration with TSR on an IBM Watson data analytics case study from 2023-2024.

Converge Technology Solutions reported Q3 2024 results showing mixed performance. The company experienced a decrease in gross sales by 8.9% to $945.0 million and revenue declined 11.2% to $630.7 million. Despite challenges, year-to-date cash from operations increased by $97 million to $212.4 million. The company reduced net debt by $30 million from Q2 2024 and returned $61.7 million to shareholders year-to-date. Notable was a non-cash impairment charge of $176.1 million on the Germany segment. The company announced CEO transition with Greg Berard appointed to the Board as Shaun Maine steps down.

Converge Technology Solutions (TSX: CTS) (OTCQX: CTSDF) has been awarded Solution Partner of the Year for North America by Ingram Micro at the 2024 ONE Innovation Summit in Maryland. The award recognizes partners who have demonstrated exceptional performance across multiple solution categories and leveraged cross-solutions to create significant impact. This achievement follows Converge's previous recognitions as Cloud Reseller Partner of the Year (2020-2022), Blue Series Partner of the Year, and CORE Partner of the Year (2021), highlighting their consistent growth and ability to deliver innovative solutions alongside Ingram Micro.

Converge Technology Solutions (CTSDF) released preliminary Q3-2024 results, with revenue expected between $630.0-631.0 million, below previous guidance of $636-658 million and lower than Q3-2023's $710.1 million. Gross profit is anticipated at $158.0-158.5 million, below guidance of $172-178 million and Q3-2023's $174.1 million. Adjusted EBITDA is projected at $31.8-32.3 million, missing guidance of $43-47 million and Q3-2023's $41.3 million. The company attributes the decline to delayed project spending, lower hardware demand, and customers postponing end-user device refreshes until 2025's AI PC availability. However, cloud and software revenue showed year-over-year growth.

Converge Technology Solutions Corp. (TSX: CTS) (FSE: 0ZB) (OTCQX: CTSDF) has announced a conference call to discuss its third quarter fiscal 2024 results on Tuesday, November 12th, 2024 at 8:00am EST. The call will be hosted by the Converge leadership team, followed by a question-and-answer session. Financial results will be reported in the morning prior to the call.

Participants can join via webcast or dial-in with operator assistance. The conference ID is 71060. International toll-free numbers are provided for Germany, Ireland, Spain, Switzerland, and the United Kingdom. A recording playback will be available until November 19th, 2024. Presentation slides and an archive of the call will be accessible on the company's investor relations website.

Converge Technology Solutions Corp. (TSX: CTS) has joined Red Hat Partner Practice Accelerator, a specialized growth pathway for select partners with validated professional services delivery capabilities. This collaboration aims to enhance Converge's ability to deliver successful customer outcomes using Red Hat technologies and services within the commercial sector, particularly in mid-market and SMB segments.

The program focuses on enabling partners to provide critical services related to automation and application modernization, using solutions like Red Hat Ansible Automation Platform and Red Hat OpenShift. Converge's participation demonstrates its commitment to deepening capabilities and supporting customers more effectively. The collaboration is part of Red Hat's evolving partner engagement model, designed to implement a standardized, globally unified approach to collaboration.

Converge Technology Solutions Corp. (TSX: CTS) has successfully achieved PCI-DSS certification for its IBM Power for Google Cloud (IP4G) platform. IP4G is an Infrastructure as a Service (IaaS) solution available on Google Marketplace, enabling clients to run native AIX, IBM i, and Linux workloads in the Google Cloud environment. The certification validates IP4G's security and reliability, particularly for clients managing mission-critical retail, financial, and banking applications. This achievement expands Converge's addressable market within the retail and financial industries, reinforcing its commitment to providing secure and compliant industry solutions.