H.I.G. Capital has entered into a definitive arrangement agreement to acquire all outstanding common shares of Converge Technology Solutions. The strategic rationale for the transaction centers on the immediate merger of Converge with Mainline Information Systems, an existing H.I.G. portfolio company. This combination is designed to create a scaled, global IT solutions platform with enhanced capabilities in hybrid cloud, cybersecurity, and digital infrastructure. By joining these two complementary organizations, the resulting entity will possess the technical depth and global reach required to advise IT decision-makers on mission-critical workloads. The deal provides a significant premium to public shareholders while transitioning the company to private ownership to facilitate a long-term growth strategy. The merger is expected to strengthen relationships with global OEM partners and provide a broader suite of professional and managed services to a combined customer base across North America and Europe.

CONVERGE TECHNOLOGY SOLUTIONS, which reported an EBITDA margin of LOGIN in 2024, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN discount to the average currently observed in the TMT (Tech, Media, Telecom) sector (12.8x).

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