Converge Announces €156 Million Framework Contract Win Secured by REDNET GmbH

Rhea-AI Summary

Converge Technology Solutions Corp. (CTSDF) and its subsidiary REDNET GmbH announced a significant public sector contract in Germany. The contract, valued at approximately 156 million euros, spans three years and enables public authorities and universities in Rhineland-Palatinate and Saarland to procure various IT equipment, including thin clients, notebooks, and printers. REDNET secured multiple lots and aims to support the digital transformation of these institutions by 2025. This contract reinforces Converge's growth strategy in Germany and Europe.

Positive

• Contract valued at approximately 156 million euros, enhancing revenue streams over three years.
• Strengthened position in the public sector market in Germany with ongoing partnerships.
• Continued support for institutions in their digital transformation efforts.

Negative

• None.

TORONTO and MAINZ, Germany, Aug. 02, 2022 (GLOBE NEWSWIRE) -- Converge Technology Solutions Corp. (“Converge” or “the Company”) (TSX:CTS) (FSE:0ZB) (OTCQX:CTSDF) a software-enabled IT & Cloud Solutions provider, is pleased to announce in conjunction with its subsidiary REDNET GmbH (“REDNET”), an IT partner specializing in public authorities, educational institutions and the healthcare sector that REDNET secured a large public sector contract in Germany ( the “Contract”).

This contract allows public authorities, local authorities and universities in Rhineland-Palatinate and Saarland to procure computer hardware through REDNET which won no fewer than eight lots and will equip public authorities, local authorities and universities in both German federal states with thin clients, notebooks, servers, laser printers, inkjet printers, Windows tablets, iOS tablets and scanners until May 2025. The institutions in Rhineland-Palatinate equipped by REDNET include the Landtag (state parliament), ministries, municipalities, police and judiciary, as well as universities and state companies organized under private law, the majority of which are publicly owned. In Saarland, among others, ministries, the Landtag, state companies and universities can procure their IT via REDNET in compliance with procurement law.

“With an estimated contract volume of 156 million euros within 3 years for the awarded lots, the IT framework contract is a large public sector contract in Germany. We are thrilled that we were once again able to convince with our know-how, our 360° service portfolio and the good partnership with the manufacturers and that we can successfully continue our cooperation, which has been uninterrupted since 2004,” said Barbara Weitzel, CEO of REDNET GmbH. “We are very proud of REDNET's renewed success in this important tender. As a result, the REDNET team can continue to successfully support the public authorities, universities and schools in Rhineland-Palatinate and Saarland in their digital transformation,” stated Shaun Maine, CEO of Converge Technology Solutions Corp. “This is another important milestone in our joint German and European growth strategy.”

About REDNET

Founded in 2004, REDNET GmbH is an IT partner for public authorities, educational institutions and the healthcare sector and has developed into a nationwide provider for the digitalization of public institutions in recent years. The company with headquarter in Mainz, which has been part of the Canadian Solutions Technology Corp. group of companies since 2021 and employs around 180 people, maintains important framework agreements in numerous German federal states. From years of working with public authorities, educational institutions and the healthcare sector, REDNET knows the specific challenges that the institutions face due to digital transformation. With specialist teams and its know-how, REDNET accompanies them as an IT partner with its 360° approach through digitalization and offers them the development of holistic solutions up to the integration of groundbreaking technologies that give them access to the working world of tomorrow.

About Converge
Converge Technology Solutions Corp. is a software-enabled IT & 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 multi-faceted approach enables Converge to address the unique business and technology requirements for all clients in the public and private sectors. For more information, visit convergetp.com.

For further information contact:

Converge Technology Solutions Corp.
Email: investors@convergetp.com
Phone: 416-360-1495

REDNET GmbH
Email: tanja.jost@rednet.ag
Phone: 0049 61 31 250 62-175

Forward-Looking Information
Certain information contained in this press release may constitute forward-looking information under applicable securities laws, including statements related to the Company’s and its subsidiaries positioning with certain German public authorities, resulting contract implications and other statements that are not historical facts. Forward-looking statements are necessarily based upon various assumptions that, while the Company considers reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Except as required by law, Converge assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change. The reader is cautioned not to place undue reliance on forward-looking statements.

For a detailed description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s filings available on SEDAR under the Company’s profile at www.sedar.com including its most recent Annual Information Form, its Management Discussion and Analysis and its Annual and Quarterly Financial Statements.

FAQ

What is the value of the public sector contract secured by Converge Technology Solutions?

The public sector contract secured by Converge Technology Solutions is valued at approximately 156 million euros.

Which regions in Germany will benefit from the contract awarded to REDNET?

The regions benefiting from the contract are Rhineland-Palatinate and Saarland.

What types of IT equipment are included in the contract?

The contract includes thin clients, notebooks, servers, laser printers, inkjet printers, Windows tablets, iOS tablets, and scanners.

Until when will the procurement of IT equipment be completed under the contract?

The procurement of IT equipment is scheduled to be completed by May 2025.

What strategic goal does this contract support for Converge Technology Solutions?

This contract supports Converge's growth strategy in the German and European markets.