Update: Converge Technology Solutions Up 11% as It Agrees with H.I.G. Capital To Amend Takeover Deal

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Update: Converge Technology Solutions Up 11% as It Agrees with H.I.G. Capital To Amend Takeover Deal

, MT Newswires - 11:52 AM ET 4/2/2025 mergers-and-acquisitions

11:52 AM EDT, 04/02/2025 (MT Newswires) -- (Updates shares.)

Converge Technology Solutions ( CTSDF ) late on Tuesday said it agreed to amend its deal with H.I.G. Capital, under which H.I.G. has agreed to acquire Converge, raising the cash consideration for shareholders to $6.00 per share from $5.50.

Converge on March 7 received an unsolicited, conditional, non-binding proposal to acquire the company for $6.00 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 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 $6.00 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.

Converge shares were last seen up $0.575 to $6.045 on the Toronto Stock Exchange.

Price: 6.05, Change: +0.58, Percent Change: +10.60

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