Converge Technol - CTSDF STOCK NEWS

Converge Technology Solutions Corp. (CTSDF) will announce its financial results for the fiscal year and Q4 2022 on March 15, 2023, after market close. This will be followed by a conference call on March 16, 2023, at 8:00 AM EST, hosted by key executives including Board Chair Thomas Volk and CEO Shaun Maine. Investors can access a webcast of the call and playback will be available afterward. Converge provides IT and cloud solutions, focusing on advanced analytics, cybersecurity, and digital infrastructure tailored for various industries.

Converge Technology Solutions Corp. has been recognized in the Elite 150 category of CRN's 2023 Managed Service Provider 500 list. This annual list honors top technology providers who transform the IT channel with innovative managed services. According to CRN, these service providers enhance efficiency and simplify IT for businesses while maximizing investment returns. Shaun Maine, CEO of Converge, expressed pride in their Managed Services team, which is critical for the company's go-to-market strategy and is expected to continue expanding in 2023.

The recognition emphasizes Converge's commitment to delivering advanced IT and Cloud solutions.

Converge Technology Solutions Corp. (TSX:CTS) reported record preliminary financial performance for the fiscal year 2022, highlighting a net revenue of approximately $2.5 billion, a 67% increase from $1.5 billion in FY21. Gross profit rose 59% to $548.1-$553.1 million. Q4-2022 net revenue was $765.3-$777.6 million, with a gross profit of $166.2-$171.2 million. Bookings exceeded $1 billion in Q4, marking strong demand despite supply chain challenges. Cash on hand stood at $159.8 million. The company also plans to enhance its Global Credit Facility to $600 million.

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.