CONVERGE TECH SLTN CORP - CTSDF STOCK NEWS

On February 9, 2023, Converge Technology Solutions Corp. announced an increase in its Global Credit Facility from $500 million to $600 million. The expansion allows the company to borrow under its multi-currency facility to support ongoing global expansion.

The credit facility features loans based on the SOFR rate, with a margin of 1.25% to 2.25%. The Group CEO, Shaun Maine, stated this improvement enhances liquidity and supports the company’s disciplined acquisition strategy in North America and Europe.

Converge Technology Solutions Corp. has engaged Canaccord Genuity Corp and Houlihan Lokey Capital, Inc as co-financial advisors to explore strategic alternatives following a decision by its Special Committee on November 22, 2022. The Company also appointed LodeRock Advisors Inc. to manage investor relations. However, there are no assurances that this process will lead to a definitive transaction, and Converge does not intend to provide further updates until a specific outcome is reached.

Converge Technology Solutions Corp. (CTSDF) has formed a special committee of independent directors to evaluate strategic alternatives aimed at maximizing shareholder value. This decision follows received expressions of interest in the Company and will consider options such as a sale, merger, or other strategic transactions. The committee will be chaired by Brian Phillips and includes notable independent directors. Converge's management has expressed support for this move, emphasizing alignment with the Board to explore these strategies. No assurance exists that this process will lead to a definitive transaction.

Converge Technology Solutions Corp. (CTSDF) was recognized as Cisco's Multiple Region Partner of the Year for 2022, reflecting its robust performance across North America. The award highlights Converge's significant contributions, including driving Cisco bookings in 43 states and recording over $1M in 31 sales regions. CEO Shaun Maine expressed pride in the partnership with Cisco and emphasized future growth opportunities. The announcement was made at the annual Cisco Partner Summit, celebrating top partners' achievements in the technology sector.

Converge Technology Solutions Corp. reported strong financial results for Q3 2022, with net revenues increasing by 64% to $603.2 million. Gross profit also rose by 67% to $139.7 million, leading to an impressive 297% surge in net income of $18.2 million. The company's adjusted EBITDA improved 64% to $31.0 million. Converge achieved organic growth and completed 10 acquisitions this year, contributing to their $500 million services business. They anticipate continued high demand for services into 2023.

Converge Technology Solutions Corp. has been awarded the 2022 Triple Crown Award by CRN, recognizing its position as a top North American solution provider. Converge ranked #18 on the Triple Crown list after being listed in CRN's Solution Provider 500, Fast Growth 150, and Tech Elite 250. This accolade highlights the firm's revenue growth, technical expertise, and strong sales performance in the IT sector.

Converge Technology Solutions Corp. has completed the acquisition of Stone Technologies Group Limited, announced on September 22, 2022. This acquisition marks the 35th since October 2017. Stone, with over 30 years of experience, provides ICT solutions to both public and private sectors in the UK, focusing on sustainability and reducing ownership costs through innovations like the Stone 360 App. The acquisition is expected to enhance Converge's offerings in advanced analytics, cloud platforms, and more, further solidifying its position in the IT and Cloud Solutions market.

Converge Technology Solutions Corp. (CTSDF) will announce its third-quarter financial results on November 8, 2022, after market close. A conference call hosted by CEO Shaun Maine and CFO Richard Lecoutre will take place on November 9, 2022, at 8:00 AM EST. Investors and analysts can join via a webcast or dial-in. The Q3 results will encompass the three and nine-month periods ending September 30, 2022. The call will feature a question-and-answer session for participants.

Further information can be found on Converge's investor relations webpage.

Converge Technology Solutions Corp. (CTSDF) has received certification to sell and implement IBM zSystems and LinuxONE in Canada, effective September 28, 2022. This development allows Converge to offer advanced IT solutions, including quantum-safe encryption and tailored enterprise-grade server systems to Canadian clients. Previously providing these services in the U.S., Converge aims to leverage its technical expertise to enhance service delivery across North America. This certification reflects Converge's commitment to expanding its capabilities and meeting the needs of mission-critical workloads.