H.I.G. Capital Acquires Converge Technology: A Strategic Move in the IT and Cloud Computing Sector

H.I.G. Capital, a leading global alternative investment firm, has announced its acquisition of Converge Technology Solutions Corp. (CTS), a Canadian IT and cloud computing company, in a C$1.3 billion deal. The acquisition, which values CTS at a 56% premium to its closing price on February 6, 2025, reflects H.I.G.'s positive assessment of Converge's long-term growth prospects and the market trends in the IT and cloud computing sector.

The acquisition of Converge aligns with H.I.G.'s investment strategies, particularly its focus on mid-cap companies and its hands-on, operationally focused approach to driving value creation. H.I.G. has a history of investing in companies with strong growth potential and helping them execute their long-term growth strategies. By acquiring Converge, H.I.G. is signaling its confidence in the company's ability to capitalize on emerging trends in the IT and cloud computing sector.

Converge's offerings in advanced analytics, AI, application modernization, cloud platforms, cybersecurity, digital infrastructure, and digital workplace solutions complement H.I.G.'s existing portfolio, particularly its investment in Mainline Information Systems. This complementarity enables the combined company to provide a broader range of solutions to customers and OEM partners in areas such as core data center infrastructure, networking, security, and hybrid cloud.

The combination of Converge and Mainline Information Systems is expected to enhance the competitive position of the combined company in the IT and cloud computing market. By offering a broader range of products and services, expanding their customer base and geographic reach, and leveraging their combined expertise and talent, the combined company can better serve customers, improve operational efficiency, and capitalize on new opportunities.

H.I.G. Capital's Managing Director, Aaron Tolson, stated, "Converge stands out as an organization that understands where technology trends are going in the IT market and has aligned its business accordingly, and it has a proven reputation as a trusted advisor to its customers." This statement underscores H.I.G.'s confidence in Converge's ability to capitalize on emerging trends in the IT and cloud computing sector.

In conclusion, H.I.G. Capital's acquisition of Converge Technology Solutions Corp. is a strategic move that aligns with the firm's investment strategies and reflects its positive assessment of Converge's long-term growth prospects and the market trends in the IT and cloud computing sector. The combination of Converge and Mainline Information Systems is expected to enhance the competitive position of the combined company, enabling it to better serve customers, improve operational efficiency, and capitalize on new opportunities.