Converge Technology Solutions, H.I.G. Capital Agreed To Amend Takeover Deal, Boosts Cash Consideration

Important legal information about the email you will be sending. By using this service, you agree to input your real email address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an email. All information you provide will be used by Fidelity solely for the purpose of sending the email on your behalf. The subject line of the email you send will be "Fidelity.com: "

Converge Technology Solutions, H.I.G. Capital Agreed To Amend Takeover Deal, Boosts Cash Consideration

, MT Newswires - 6:43 AM ET 4/2/2025 mergers-and-acquisitions

06:43 AM EDT, 04/02/2025 (MT Newswires) -- Converge Technology Solutions ( CTSDF ) late on Tuesday said it has agreed to amend its deal with H.I.G. Capital, under which H.I.G. has agreed to acquire all of Converge's issued and outstanding common shares. The amendment raises the cash consideration for shareholders to $6 per common share from $5.50.

Converge on March 7 received an unsolicited, conditional, non-binding proposal to acquire 100% of its common shares for $6 per share from an unnamed third party. The company's board determined that the unsolicited proposal could be or could lead to a superior proposal to that of H.I.G. Capital.

On March 25, H.I.G. commenced a proceeding in the Ontario Superior Court of Justice claiming that Converge had breached certain provisions of its deal and was therefore not permitted to accept or approve another proposal. Converge denied the claims and rejected H.I.G.'s positions.

On March 31, Converge received an unsolicited, binding all-cash acquisition proposal from the third party at $6 per common share. H.I.G. then advised Converge that it was prepared to enter into an amendment to increase the cash price under its deal to $6 per share.

On April 1, the third party submitted an amended binding proposal increasing its offer by 1.7% to $6.10 per share.

The board considered both options and determined that entering into the amendment of its deal with H.I.G. Capital was in the best interests of Converge.

The board and a special committee in consultation with legal and financial advisers considered that the amendment offers shareholders a high degree of certainty of a completed transaction on a very short timeline at a price that is higher than the original offer.

As part of the amendment deal, Converge and H.I.G. have also agreed to permanently discontinue the court proceedings, and Converge has agreed to discontinue discussions with the third party.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.