Converge Technology Solutions Adjusts Agreement with H.I.G. Capital
Converge Technology Solutions Amends Agreement with H.I.G. Capital
Converge Technology Solutions Corp. (TSX: CTS) has made significant adjustments to its previous arrangement agreement with H.I.G. Capital. This amendment reflects the company's commitment to improving shareholder value while navigating complexities in the acquisition process. The company, often referred to simply as Converge, aims to streamline the acquisition for the benefit of all parties involved.
Details of the Amendment
Under the newly amended agreement, Converge shareholders will receive C$6.00 per common share in cash, an increase from the initial offer of C$5.50. However, this applies to all shares except those held by certain shareholders who are involved in rollover equity agreements. This change provides shareholders with immediate cash, enhancing the overall appeal of the arrangement.
Unsolicited Proposal and Board Response
Recently, Converge's board of directors received an unsolicited proposal from a credible third party offering to acquire all outstanding shares for the same cash price of C$6.00. The board evaluated this proposal carefully, determining it was indeed a bona fide acquisition offer that could lead to a superior proposition for shareholders.
Legal Proceedings and Defense
In light of the unsolicited proposal, H.I.G. Capital initiated legal proceedings, asserting that Converge’s engagement with the third party violated the arrangement terms. Despite these claims, Converge has firmly rejected H.I.G.'s accusations, asserting their right to explore profitable alternatives for their shareholders.
Revisiting Offers
A new proposal surfaced from the third party, increasing their offer to C$6.10 per share. After considering this new bid, Converge’s Board decided to proceed with amending the arrangement with H.I.G., prioritizing a swift and secure deal to finalize the acquisition, while also ensuring certainty for the shareholders.
Conclusion on Shareholder Meeting
As part of the upcoming process, Converge will hold a special shareholders meeting where they will vote on the revised arrangement resolution. The meeting will occur virtually, allowing wider accessibility for all shareholders wishing to participate.
About Converge Technology Solutions
Converge Technology Solutions Corp. is transforming how businesses engage with IT, with a focus on outcomes that reflect human-centered challenges. Positioned as a leading IT and cloud solutions provider, Converge leverages deep expertise and global resources to address complex technological needs, helping various industries innovate and enhance their operations.
Through offerings that include advanced analytics, artificial intelligence, cloud platforms, cybersecurity, and digital infrastructure, Converge Empower businesses to achieve remarkable results. Their AIM (Advise, Implement, Manage) approach guarantees customization of solutions to meet the specific needs of each client, promoting successful integration within existing systems.
Frequently Asked Questions
What is the current cash offer per share under the amended agreement?
The current cash offer has been raised to C$6.00 per common share.
How did recent proposals impact the arrangement between Converge and H.I.G.?
The unsolicited third-party proposal prompted Converge to reassess the agreement with H.I.G., ultimately leading to the amendment that benefits shareholders.
What was Converge's response to H.I.G.'s legal actions?
Converge has rejected H.I.G.'s claims, asserting their right to engage with other credible third-party proposals.
When will shareholders vote on the new arrangement?
The special meeting for shareholders to vote on the revised arrangement will take place virtually, ensuring easy access to all involved.
What role does advanced technology play in Converge's strategy?
Converge uses advanced technology like AI and cloud solutions to transform IT infrastructure for its clients, driving efficiency and performance.
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