Annuncio • Apr 15
Converge Technology Solutions Unveils Data & Ai Design Studio to Supercharge Organizations' Path to AI Maturity Converge Technology Solutions Corp. announced Data & AI Design Studio, a comprehensive program designed to guide businesses at every stage of their artificial intelligence (AI) journey. Companies are prioritizing AI investment as a critical driver for innovation across industries but have faced roadblocks in turning investment into action and creating measurable impact and value from AI. Converge's Data & AI Design Studio will bridge this gap for IT teams by providing a holistic framework that ensures AI initiatives are impactful, cost-effective, and aligned with business goals. The challenges facing AI implementation projects are complex as organizations look to unravel challenges stemming from data quality, privacy and security, IT infrastructure, and even financial justification. Barriers to implementation continue to result in too many AI projects getting stuck in proof-of-concept limbo, showing promise but never making it to production. Businesses on an AI journey demand a strategic approach that addresses governance, data integrity, financial justification, and vendor partnerships. Converge's outcomes-driven Data & AI Design Studio tackles the human-centered challenges enterprises face and empowers clients to move beyond AI experimentation and into execution. With deep industry knowledge, robust security and compliance standards, and a tailored approach to AI implementation, Converge helps businesses integrate AI seamlessly to maximize ROI, all while mitigating risks. Not all companies start at the same place in their AI journey. The Data & AI Design Studio offers customers a simple maturity curve to identify their current stage and workshops to help organizations build an AI implementation strategy, including: AI Briefing - an organizationally tailored high-level sample workshop designed to bridge gaps in understanding AI, its tools, and large language models (LLMs), as well as potentially uncover AI use cases within the enterprise. AI Ideation Workshop - a workshop session designed to guide leaders in identifying AI use cases within their organization that align and support the achievement of key business goals. Use Case Assessment Roadmap - a deep dive exercise tailored for companies ready to advance their AI journey. Focused on evaluating and prioritizing AI use cases, building business cases for key initiatives, and establishing a strategic vision for the organization's future. AI Design Thinking - a workshop for groups with an identified AI use case they are considering advancing. This session confirms or establishes perspectives on business viability, implementation complexity, impact, and ROI, providing the clarity needed to make informed go/no-go decisions. AI Solution Design - a multi-week technical design initiative for organizations with a strong idea for an AI solution they are ready to invest in. This exercise arms teams with everything needed to implement vision, from technical architecture and product backlog to wireframes and project plans. Whether you're in the early stages of exploring AI applications or scaling enterprise-wide initiatives, Converge provides the expertise, infrastructure, and support needed for success. Discover AI maturity by completing Converge's AI Journey Assessment here. To learn more about Data & AI Design Studioclick here. Annuncio • Feb 10
Converge Technology Solutions Corp. to Report Q4, 2024 Results on Mar 06, 2025 Converge Technology Solutions Corp. announced that they will report Q4, 2024 results on Mar 06, 2025 Annuncio • Feb 08
Converge Technology Solutions Corp. and Mainline Information Systems, LLC Announce Greg Berard to Serve as Chief Executive Officer and Jeff Dobbelaere to Serve as President of Combined Business Converge Technology Solutions Corp. announced it has entered into an arrangement agreement with an affiliate of H.I.G. Capital ("H.I.G."), whereby H.I.G has agreed to acquire all of the issued and outstanding
common shares of the Company (the "Transaction"). The combined business will be led by a proven management team that reflects the strengths and capabilities of both organizations. Following the closing, Converge Chief Executive Officer Greg Berard will serve as Chief Executive Officer of the combined business and Mainline President and Chief Executive Officer Jeff Dobbelaere will serve as President. Annuncio • Feb 07
Converge Technology Intends to Apply to Delist the Common Shares from All Public Markets Converge Technology Solutions Corp. announced it has entered into an arrangement agreement (the "Arrangement Agreement") with an affiliate of H.I.G. Capital ("H.I.G."), whereby H.I.G has agreed to acquire all of the issued and outstanding common shares (the "Common Shares") of the Company (the "Transaction"). Under the terms of the Arrangement Agreement, shareholders will receive CAD 5.50 per Common Share in cash, other than Common Shares held by certain shareholders who enter into rollover equity agreements (the "Rollover Shareholders"). The purchase price of the Transaction values Converge at an enterprise value of approximately CAD 1.3 billion. Upon completion of the Transaction, the Company intends to apply to delist the Common Shares from all public markets and cease to be a reporting issuer under Canadian securities laws. Declared Dividend • Nov 16
Third quarter dividend of CA$0.015 announced Shareholders will receive a dividend of CA$0.015. Ex-date: 10th December 2024 Payment date: 27th December 2024 Dividend yield will be 1.8%, which is lower than the industry average of 2.1%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months. However, the dividend is well covered by cash flows (4% cash payout ratio). The dividend has increased by an average of 22% per year over the past 2 years and payments have been stable during that time. Reported Earnings • Nov 13
Third quarter 2024 earnings released: CA$0.017 loss per share (vs CA$0.009 loss in 3Q 2023) Third quarter 2024 results: CA$0.017 loss per share (further deteriorated from CA$0.009 loss in 3Q 2023). Revenue: CA$630.7m (down 11% from 3Q 2023). Net loss: CA$3.31m (loss widened 84% from 3Q 2023). Revenue is forecast to grow 1.3% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the IT industry in Germany. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 92 percentage points per year, which is a significant difference in performance. New Risk • Oct 24
New minor risk - Dividend sustainability The dividend is not well covered by earnings. The company is paying a dividend despite being loss-making. Dividend yield: 1.8% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. However, this risk is mitigated by the fact the dividend is covered by cash flows. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite being loss-making. Currently unprofitable and not forecast to become profitable next year (CA$62m net loss next year). Share price has been volatile over the past 3 months (7.3% average weekly change). Annuncio • Oct 22
Converge Technology Solutions Corp. to Report Q3, 2024 Results on Nov 12, 2024 Converge Technology Solutions Corp. announced that they will report Q3, 2024 results on Nov 12, 2024 New Risk • Aug 12
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next year. Trailing 12-month net loss: CA$161m Forecast net loss in 1 year: CA$40m This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. Currently, the following risks have been identified for the company: Minor Risks Currently unprofitable and not forecast to become profitable next year (CA$40m net loss next year). Share price has been volatile over the past 3 months (6.8% average weekly change). Significant insider selling over the past 3 months (€249k sold). Declared Dividend • Aug 12
Second quarter dividend of CA$0.015 announced Shareholders will receive a dividend of CA$0.015. Ex-date: 27th August 2024 Payment date: 10th September 2024 Dividend yield will be 1.4%, which is lower than the industry average of 2.1%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months. However, the dividend is well covered by cash flows (3% cash payout ratio). The company is yet to establish a track record of dividend growth or stability as it hasn't paid a regular dividend for at least 2 years. Reported Earnings • Aug 09
Second quarter 2024 earnings released: CA$0.82 loss per share (vs CA$0.017 loss in 2Q 2023) Second quarter 2024 results: CA$0.82 loss per share (further deteriorated from CA$0.017 loss in 2Q 2023). Revenue: CA$651.8m (down 2.1% from 2Q 2023). Net loss: CA$163.3m (loss widened CA$159.8m from 2Q 2023). Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 8.2% growth forecast for the IT industry in Germany. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 77 percentage points per year, which is a significant difference in performance. New Risk • Aug 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 6.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (6.7% average weekly change). Significant insider selling over the past 3 months (€249k sold). Recent Insider Transactions • Jun 25
Chief Financial Officer recently sold €157k worth of stock On the 20th of June, Avjitpal Kamboj sold around 50k shares on-market at roughly €3.14 per share. This transaction amounted to 14% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Avjitpal has been a net seller over the last 12 months, reducing personal holdings by €81k. Upcoming Dividend • May 15
Upcoming dividend of CA$0.015 per share Eligible shareholders must have bought the stock before 22 May 2024. Payment date: 06 June 2024. The company is not currently making a profit but it is cash flow positive. Trailing yield: 0.8%. Lower than top quartile of German dividend payers (4.6%). Lower than average of industry peers (2.3%). Annuncio • May 10
Converge Technology Solutions Corp. Provides Earnings Guidance for the Three Months Ended June 30, 2024 Converge Technology Solutions Corp. provided earnings guidance for the three months ended June 30, 2024. For the period, the company expects Gross profit to be in the range of $175 million - $182 million. Reported Earnings • May 10
First quarter 2024 earnings released: CA$0.009 loss per share (vs CA$0.009 loss in 1Q 2023) First quarter 2024 results: CA$0.009 loss per share (in line with 1Q 2023). Revenue: CA$628.8m (down 7.3% from 1Q 2023). Net loss: CA$1.91m (loss narrowed 2.3% from 1Q 2023). Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 9.0% growth forecast for the IT industry in Germany. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Annuncio • Apr 20
Converge Technology Solutions Corp. to Report Q1, 2024 Results on May 09, 2024 Converge Technology Solutions Corp. announced that they will report Q1, 2024 results on May 09, 2024 Annuncio • Apr 06
Converge Technology Solutions Corp., Annual General Meeting, Jun 19, 2024 Converge Technology Solutions Corp., Annual General Meeting, Jun 19, 2024. Annuncio • Mar 08
Converge Technology Solutions Corp. Declares Quarterly Dividend, Payable on March 26, 2024 On March 5, 2024, the Board of Converge Technology Solutions Corp. declared a quarterly dividend of $0.01 per common share to be paid on March 26, 2024 to shareholders of record at the close of business on March 12, 2024. Reported Earnings • Mar 07
Full year 2023 earnings released: CA$0.007 loss per share (vs CA$0.13 profit in FY 2022) Full year 2023 results: CA$0.007 loss per share (down from CA$0.13 profit in FY 2022). Revenue: CA$2.71b (up 25% from FY 2022). Net loss: CA$1.45m (down 105% from profit in FY 2022). Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 9.0% growth forecast for the IT industry in Germany. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Annuncio • Jan 30
Converge Technology Solutions Corp. to Report Q4, 2023 Results on Mar 06, 2024 Converge Technology Solutions Corp. announced that they will report Q4, 2023 results on Mar 06, 2024 Recent Insider Transactions • Dec 08
Group CEO & Director recently bought €92k worth of stock On the 5th of December, Shaun Maine bought around 33k shares on-market at roughly €2.78 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Shaun has been a buyer over the last 12 months, purchasing a net total of €114k worth in shares. Annuncio • Dec 05
Wendy Bahr Joins Converge Technology Solutions Corp.'s Board of Directors Converge Technology Solutions Corp. announced the appointment of Wendy Bahr to the Company's Board of Directors. Wendy is a Corporate Executive with global sales experience leading direct and indirect sales channels. Prior to 2019, Wendy served as Senior Vice President at Cisco. Most recently, Wendy held the role of Chief Commercial Officer at leading cloud security organization Rubrik Inc. She also currently acts as a strategic advisor to several portfolio companies of JCVentures. Wendy will immediately join Converge's Board as an independent Director. Upcoming Dividend • Dec 05
Upcoming dividend of CA$0.01 per share at 1.0% yield Eligible shareholders must have bought the stock before 12 December 2023. Payment date: 28 December 2023. The company is not currently making a profit but it is cash flow positive. Trailing yield: 1.0%. Lower than top quartile of German dividend payers (5.1%). Lower than average of industry peers (2.2%). Reported Earnings • Nov 15
Third quarter 2023 earnings released: CA$0.009 loss per share (vs CA$0.098 profit in 3Q 2022) Third quarter 2023 results: CA$0.009 loss per share (down from CA$0.098 profit in 3Q 2022). Revenue: CA$710.1m (up 18% from 3Q 2022). Net loss: CA$1.80m (down 109% from profit in 3Q 2022). Revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 9.1% growth forecast for the IT industry in Germany. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Annuncio • Nov 15
Converge Technology Solutions Corp. Declares Third Quarter Dividend on Common Share, Payable on December 28, 2023 Converge Technology Solutions Corp. announced that Board of Directors authorized a third quarter dividend of $0.01 per common share to be paid on December 28, 2023 to shareholders of record at the close of business on December 13, 2023. Valuation Update With 7 Day Price Move • Nov 08
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to €2.11, the stock trades at a forward P/E ratio of 42x. Average forward P/E is 16x in the IT industry in Germany. Total returns to shareholders of 12% over the past three years. Annuncio • Oct 25
Converge Technology Solutions Corp. to Report Q3, 2023 Results on Nov 14, 2023 Converge Technology Solutions Corp. announced that they will report Q3, 2023 results Pre-Market on Nov 14, 2023 New Risk • Oct 23
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of German stocks, typically moving 9.2% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.5x net interest cover). Share price has been highly volatile over the past 3 months (9.2% average weekly change). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.5% net profit margin). Valuation Update With 7 Day Price Move • Oct 19
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to €1.58, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 15x in the IT industry in Germany. Negligible returns to shareholders over past three years. Annuncio • Oct 12
Converge Technology Solutions Appoints Patrick Haupt as Managing Director of Converge Germany, Effective December 1, 2023 Converge Technology Solutions Corp. announced the appointment of Patrick Haupt to Managing Director of Germany, effective December 1, 2023. An experienced and trusted director with 30+ years of market experience in computing, software, security, storage, and IT services within the German Public Sector ecosystem, Patrick joins Converge after serving as Sales Director of Client Computing for Fujitsu for over 10 years. Previously, he held roles ranging from sales development to engagement/project management to financial services. In his role as Managing Director, Patrick joins Peter Klein and Mathias Harms on the Converge Executive Leadership Team and will be responsible for directing Converge's solutions/sales strategy, services expansion, and end to end operations across all of Germany. Additionally, as Converge continues its ongoing process of global transformation and integration, Patrick will lead the Company's efforts in consolidating and integrating Deqster, GfdB, REDNET, and Visucom into One Converge Germany, going to market as a single entity to advance and evolve Converge's global commitment to continuous improvement to the company’s client experience and customer success. Furthermore, developing, retaining, and expanding the skills and capabilities of all of the company’s employees across Germany is at the foundation of Converge Technology Solutions global business model. Upcoming Dividend • Aug 31
Upcoming dividend of CA$0.01 per share at 1.5% yield Eligible shareholders must have bought the stock before 07 September 2023. Payment date: 22 September 2023. Payout ratio is a comfortable 36% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of German dividend payers (4.9%). Lower than average of industry peers (2.1%). Valuation Update With 7 Day Price Move • Aug 16
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to €1.78, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 16x in the IT industry in Germany. Total returns to shareholders of 83% over the past three years. Annuncio • Aug 11
Converge Technology Solutions Corp. Announces Second Quarter Dividend, Payable on September 22, 2023 The Board of Directors of Converge Technology Solutions Corp. authorize second quarter dividend of $0.01 per common share to be paid on September 22nd, 2023 to shareholders of record at the close of business on September8th, 2023. New Risk • Aug 10
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 0.5% Last year net profit margin: 1.2% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.5x net interest cover). Share price has been highly volatile over the past 3 months (11% average weekly change). Minor Risks Short dividend paying track record (less than a year of continuous dividend payments). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.5% net profit margin). Reported Earnings • Aug 10
Second quarter 2023 earnings released: CA$0.017 loss per share (vs CA$0.056 profit in 2Q 2022) Second quarter 2023 results: CA$0.017 loss per share (down from CA$0.056 profit in 2Q 2022). Revenue: CA$665.8m (up 12% from 2Q 2022). Net loss: CA$3.55m (down 130% from profit in 2Q 2022). Revenue is forecast to grow 6.6% p.a. on average during the next 3 years, compared to a 9.3% growth forecast for the IT industry in Germany. Over the last 3 years on average, earnings per share has increased by 89% per year but the company’s share price has only increased by 30% per year, which means it is significantly lagging earnings growth. Annuncio • Jul 22
Converge Technology Solutions Corp. to Report Q2, 2023 Results on Aug 09, 2023 Converge Technology Solutions Corp. announced that they will report Q2, 2023 results on Aug 09, 2023 Valuation Update With 7 Day Price Move • Jun 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to €2.54, the stock trades at a forward P/E ratio of 45x. Average forward P/E is 17x in the IT industry in Germany. Total returns to shareholders of 196% over the past three years. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to €2.32, the stock trades at a forward P/E ratio of 41x. Average forward P/E is 18x in the IT industry in Germany. Total returns to shareholders of 182% over the past three years. Reported Earnings • May 10
First quarter 2023 earnings released: CA$0.009 loss per share (vs CA$0.011 loss in 1Q 2022) First quarter 2023 results: CA$0.009 loss per share (improved from CA$0.011 loss in 1Q 2022). Revenue: CA$678.2m (up 23% from 1Q 2022). Net loss: CA$1.96m (loss narrowed 19% from 1Q 2022). Revenue is forecast to grow 5.0% p.a. on average during the next 3 years, compared to a 9.2% growth forecast for the IT industry in Germany. Over the last 3 years on average, earnings per share has increased by 108% per year but the company’s share price has only increased by 43% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 26
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to €2.11, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 19x in the IT industry in Germany. Total returns to shareholders of 160% over the past three years. Reported Earnings • Mar 17
Full year 2022 earnings released: EPS: CA$0.13 (vs CA$0.086 in FY 2021) Full year 2022 results: EPS: CA$0.13 (up from CA$0.086 in FY 2021). Revenue: CA$2.16b (up 42% from FY 2021). Net income: CA$27.3m (up 71% from FY 2021). Profit margin: 1.3% (up from 1.0% in FY 2021). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 9.5% growth forecast for the IT industry in Germany. Over the last 3 years on average, earnings per share has increased by 117% per year but the company’s share price has only increased by 72% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 18
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to €3.29, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 19x in the IT industry in Germany. Total returns to shareholders of 274% over the past three years. Valuation Update With 7 Day Price Move • Nov 28
Investor sentiment improved over the past week After last week's 31% share price gain to €3.51, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 18x in the IT industry in Germany. Total returns to shareholders of 384% over the past three years. Annuncio • Nov 23
Converge Technology Solutions Corp. Forms Special Committee of Independent Directors Converge Technology Solutions Corp. announced that its Board of Directors has formed a special committee of independent directors (the "Special Committee") to undertake, in consultation with its established financial and legal advisors, a review and evaluation of strategic alternatives that may be available to the Company to unlock shareholder value. The Special Committee will be chaired by Brian Phillips, Lead Independent Director and includes Darlene Kelly, Chair of Audit Committee and Ralph Garcea, Chair of Compensation Committee. In response to expressions of interest that have been received by the Company, the Special Committee will evaluate a full range of strategic alternatives, including a sale, merger, divestiture, recapitalization, other strategic transaction, or continuing to operate as a public company. Recent Insider Transactions • Nov 20
Chairman of the Board recently bought €125k worth of stock On the 11th of November, Thomas Volk bought around 40k shares on-market at roughly €3.12 per share. This transaction amounted to 3.3% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Thomas has been a buyer over the last 12 months, purchasing a net total of €479k worth in shares. Reported Earnings • Nov 10
Third quarter 2022 earnings released: EPS: CA$0.098 (vs CA$0.023 in 3Q 2021) Third quarter 2022 results: EPS: CA$0.098 (up from CA$0.023 in 3Q 2021). Revenue: CA$603.2m (up 64% from 3Q 2021). Net income: CA$20.6m (up 348% from 3Q 2021). Profit margin: 3.4% (up from 1.3% in 3Q 2021). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 10% growth forecast for the IT industry in Germany. Over the last 3 years on average, earnings per share has increased by 122% per year but the company’s share price has only increased by 76% per year, which means it is significantly lagging earnings growth. Annuncio • Nov 08
Converge Technology Solutions Corp. (TSX:CTS) completed the acquisition of Stone Technologies Group Limited. Converge Technology Solutions Corp. (TSX:CTS) agreed to acquire Stone Technologies Group Limited on September 22, 2022. Acquisition of Stone Technologies is expected to close in the fourth quarter and is subject to conditions, including regulatory approval under the United Kingdom National Security and Investments Act 2021. Stone Group marks the thirty-fifth acquisition announced by Converge or its affiliates since October 2017. Thomas Gittens and Chris Brooks of Lincoln International LLP acted as financial advisor to Stone Technologies Group Limited.
Converge Technology Solutions Corp. (TSX:CTS) completed the acquisition of Stone Technologies Group Limited on November 7, 2022. Valuation Update With 7 Day Price Move • Nov 01
Investor sentiment deteriorated over the past week After last week's 19% share price decline to €4.09, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 16x in the IT industry in Germany. Total returns to shareholders of 559% over the past three years. Annuncio • Oct 27
Converge Technology Solutions Corp. to Report Q3, 2022 Results on Nov 08, 2022 Converge Technology Solutions Corp. announced that they will report Q3, 2022 results After-Market on Nov 08, 2022 Annuncio • Sep 23
Converge Technology Solutions Corp. (TSX:CTS) agreed to acquire Stone Technologies Group Limited. Converge Technology Solutions Corp. (TSX:CTS) agreed to acquire Stone Technologies Group Limited on September 22, 2022. Converge's acquisition of Stone is subject to conditions, including regulatory approval under the United Kingdom National Security and Investments Act 2021, and is expected to close in the fourth quarter. Stone Group marks the thirty-fifth acquisition announced by Converge or its affiliates since October 2017. Annuncio • Sep 13
Converge Technology Solutions Corp. (TSX : CTS) acquired Newcomp Analytics Inc. for CAD 20.3 million. Converge Technology Solutions Corp. (TSX : CTS) acquired Newcomp Analytics Inc. for CAD 20.3 million on September 12, 2022. Consideration for the purchase consists of CAD 20.3 million in cash paid at closing. Positive net working capital will also be paid out at closing. For the year ended July 31,2022, Newcomp Analytics generated gross revenue of approximately CAD 36.4 million with an adjusted EBITDA of CAD 3.4 million. The purchase multiple would be approximately 6 times adjusted EBITDA for the trailing twelve-month period ended July 31,2022. The acquisition is expected upon closing to be immediately accretive to Converge, resulting in increased revenue and adjusted EBITDA.Converge Technology Solutions Corp. (TSX : CTS) completed the acquisition of Newcomp Analytics Inc. on September 12, 2022. Valuation Update With 7 Day Price Move • Aug 17
Investor sentiment improved over the past week After last week's 26% share price gain to €5.53, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 20x in the IT industry in Germany. Total returns to shareholders of 716% over the past three years. Reported Earnings • Aug 11
Second quarter 2022 earnings released: EPS: CA$0.056 (vs CA$0.006 in 2Q 2021) Second quarter 2022 results: EPS: CA$0.056 (up from CA$0.006 in 2Q 2021). Revenue: CA$596.7m (up 73% from 2Q 2021). Net income: CA$12.0m (up CA$11.0m from 2Q 2021). Profit margin: 2.0% (up from 0.3% in 2Q 2021). Over the next year, revenue is forecast to grow 38%, compared to a 16% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 116% per year but the company’s share price has only increased by 93% per year, which means it is significantly lagging earnings growth. Annuncio • Aug 10
Converge Technology Solutions Corp. Announces Greg Berard as North American CEO Converge Technology Solutions Corp. announced that in addition to Greg Berard’s role as President, he will now become the North American CEO to clarify his operational role in North America to customers, partners and employees. Annuncio • Aug 03
Converge Technology Solutions Corp. (TSX:CTS) completed the acquisition of PC Specialists, Inc. Converge Technology Solutions Corp. (TSX:CTS) has signed definitive agreements to acquire PC Specialists, Inc. for $74 million on May 19, 2022. Positive net working capital will also be paid out at closing. The purchase multiple is approximately 5.96 times adjusted EBITDA for the trailing twelve-month period ended October 31, 2021, after adjusting for positive working capital. PC Specialists, Inc. generated gross revenue of approximately C$423 million ($341 million) with an adjusted EBITDA of C$14.8 million ($11.9 million) for its most recently completed fiscal year ended October 31, 2021. The acquisition is expected upon closing to be immediately accretive to Converge. Jay de Groot of Morrison & Foerster acted as legal advisor to PC Specialists, Inc.
Converge Technology Solutions Corp. (TSX:CTS) completed the acquisition of PC Specialists, Inc. on August 2, 2022. Board Change • Jul 31
High number of new directors Independent Director Toni Rinow was the last director to join the board, commencing their role in 2022. Annuncio • Jul 30
Converge Technology Solutions Corp. (TSX:CTS) acquired Gesellschaft für digitale Bildung/Institut für moderne Bildung/DEQSTER. Converge Technology Solutions Corp. (TSX:CTS) agreed to acquire Gesellschaft für digitale Bildung/Institut für moderne Bildung/DEQSTER on June 15, 2022. The transaction is subject to customary antitrust approvals. Matthias Horn, Heike Weber from Allen & Overy LLP acted as legal advisor, Boerries Ahrens from Allen & Overy LLP (Hamburg) acted as legal advisor and Allen & Overy LLP (Duesseldorf) acted as legal advisor to Converge Technology Solutions.
Converge Technology Solutions Corp. (TSX:CTS) completed the acquisition of Gesellschaft für digitale Bildung/Institut für moderne Bildung/DEQSTER on July 29, 2022. Annuncio • Jul 28
Converge Technology Solutions Corp. to Report Q2, 2022 Results on Aug 09, 2022 Converge Technology Solutions Corp. announced that they will report Q2, 2022 results After-Market on Aug 09, 2022 Recent Insider Transactions • Jun 24
Chairman of the Board recently bought €88k worth of stock On the 22nd of June, Thomas Volk bought around 22k shares on-market at roughly €4.09 per share. In the last 3 months, there was an even bigger purchase from another insider worth €922k. Thomas has been a buyer over the last 12 months, purchasing a net total of €380k worth in shares. Annuncio • Jun 24
Converge Technology Solutions Corp. Approves the Election of Toni Rinow to Board of Directors Converge Technology Solutions Corp. approved the election of Toni Rinow to Board of Directors, at the AGM held on June 23, 2022. Annuncio • Jun 16
Converge Technology Solutions Corp. (TSX:CTS) agreed to acquire Gesellschaft für digitale Bildung/Institut für moderne Bildung/DEQSTER. Converge Technology Solutions Corp. (TSX:CTS) agreed to acquire Gesellschaft für digitale Bildung/Institut für moderne Bildung/DEQSTER on June 15, 2022. Recent Insider Transactions • May 27
CEO & Director recently bought €922k worth of stock On the 24th of May, Shaun Maine bought around 180k shares on-market at roughly €5.12 per share. This was the largest purchase by an insider in the last 3 months. Shaun has been a buyer over the last 12 months, purchasing a net total of €985k worth in shares. Recent Insider Transactions • May 20
Chairman of the Board recently bought €223k worth of stock On the 13th of May, Thomas Volk bought around 50k shares on-market at roughly €4.46 per share. This was the largest purchase by an insider in the last 3 months. Thomas has been a buyer over the last 12 months, purchasing a net total of €395k worth in shares. Annuncio • May 20
Converge Technology Solutions Corp. (TSX:CTS) has signed definitive agreements to acquire PC Specialists, Inc. for $74 million. Converge Technology Solutions Corp. (TSX:CTS) has signed definitive agreements to acquire PC Specialists, Inc. for $74 million on May 19, 2022. Positive net working capital will also be paid out at closing. The purchase multiple is approximately 5.96 times adjusted EBITDA for the trailing twelve-month period ended October 31, 2021, after adjusting for positive working capital. PC Specialists, Inc. generated gross revenue of approximately C$423 million with an adjusted EBITDA of C$14.8 million for its most recently completed fiscal year ended October 31, 2021. The acquisition is expected upon closing to be immediately accretive to Converge. Reported Earnings • May 12
First quarter 2022 earnings released: CA$0.011 loss per share (vs CA$0.023 profit in 1Q 2021) First quarter 2022 results: CA$0.011 loss per share (down from CA$0.023 profit in 1Q 2021). Revenue: CA$550.0m (up 77% from 1Q 2021). Net loss: CA$2.41m (down 166% from profit in 1Q 2021). Over the next year, revenue is forecast to grow 41%, compared to a 19% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 110% per year but the company’s share price has only increased by 96% per year, which means it is significantly lagging earnings growth. Annuncio • May 10
Converge Technology Solutions Corp. Announces Converge Enterprise Cloud for IBM Guardium Insights Converge Technology Solutions Corp. announced the launch of a new services product – Converge Enterprise Cloud for IBM Guardium Insights. Converge Enterprise Cloud for IBM Guardium Insights (CECIGI) is a cloud-agnostic, hosted, and managed solution for data security and compliance. CECIGI enables clients to take advantage of the flexibility and scalability of Guardium Insights to provide advanced analytics, identifying potential data risk with much lower barriers to entry. This new offering is now featured and available in the IBM product catalog. Additionally, Converge’s turnkey solution offers proactive and preventative maintenance, platform optimization, and the ability to keep pace with clients’ ever-evolving data security requirements. CECIGI allows clients to begin operations quickly, automate data compliance and security value, manage risk more effectively, and transition from standard monitoring to active threat detection. Annuncio • May 03
Converge Technology Solutions Corp. (TSX:CTS) completed the acquisition of InterDynamix Systems Corp. Converge Technology Solutions Corp. (TSX:CTS) entered into a definitive agreement to acquire InterDynamix Systems Corp. for CAD 32.3 million on March 28, 2022. Consideration for the purchase will consist of CAD 32.3 million in cash to be paid at closing. Interdynamix joins the portfolio of companies announced by Converge The transaction is expected to close in the second quarter of 2022.
Converge Technology Solutions Corp. (TSX:CTS) completed the acquisition of InterDynamix Systems Corp. on May 2, 2022. Annuncio • Apr 22
Converge Technology Solutions Corp., Annual General Meeting, Jun 23, 2022 Converge Technology Solutions Corp., Annual General Meeting, Jun 23, 2022. Annuncio • Apr 03
Converge Technology Solutions Corp. (TSX:CTS) acquired Creative Breakthroughs, Inc. for $67 million. Converge Technology Solutions Corp. (TSX:CTS) acquired Creative Breakthroughs, Inc. for $67 million on April 1, 2022. Consideration for the purchase consisted of $47 million plus working capital in excess of $3 million paid in cash at closing and earn-out payments of up to $17 million in aggregate, payable over three years. Assuming CBI achieves the minimum level of EBITDA to earn the full earn out, the purchase multiple for the transaction would be approximately 5.1 times EBITDA in the third year following closing. Assuming no earn out payments are made, the purchase multiple would be approximately 6 times adjusted EBITDA for the trailing twelve-month period ended January 31, 2022. CBI generated gross revenue of approximately CAD 112 million ($88.0656 million) with an adjusted EBITDA of CAD 9.1 million ($7.15533 million) for the trailing twelve-month period ended January 31, 2022. The acquisition is expected to be immediately accretive to Converge, resulting in increased revenue and adjusted EBITDA.
Converge Technology Solutions Corp. (TSX : CTS) completed the acquisition of Creative Breakthroughs, Inc. on April 1, 2022. Annuncio • Mar 30
Converge Technology Solutions Corp. Appoints Richard Lecoutre to Chief Financial Officer Converge Technology Solutions Corp. announced the appointment of Richard Lecoutre to the Company’s Senior Leadership team as Chief Financial Officer. Richard is currently serving as Finance Director at Softcat PLC where he is responsible for all finance operations. During his tenure at Softcat, Richard was integral to the company’s 2015 IPO and growing the organization’s market capitalization to £3.1 billion. Richard’s successful track record of international finance leadership experience has also seen him hold senior finance positions at Volex plc and Genus plc. Richard will join Converge in the latter half of Third Quarter upon completing his notice with Softcat. Annuncio • Mar 29
Converge Technology Solutions Corp. (TSX:CTS) entered into a definitive agreement to acquire InterDynamix Systems Corp. Converge Technology Solutions Corp. (TSX:CTS) entered into a definitive agreement to acquire InterDynamix Systems Corp. on March 28, 2022. The transaction is expected to close in the second quarter of 2022. Annuncio • Feb 18
Converge Technology Solutions Corp. to Report Q4, 2021 Results on Mar 22, 2022 Converge Technology Solutions Corp. announced that they will report Q4, 2021 results After-Market on Mar 22, 2022 Annuncio • Feb 11
Converge Technology Solutions Corp. (TSX:CTS) acquired VisuCom GmbH for €5.7 million. Converge Technology Solutions Corp. (TSX:CTS) acquired VisuCom GmbH for €5.7 million on February 9, 2022. The consideration for the purchase consisted of €5.7 million in cash paid at closing. Converge Technology Solutions Corp acquired Visucom GmbH along with its subsidiary, School Supplies 4.0 GmbH. Visucom GmbH generated revenue of approximately €7.2 million with an adjusted EBITDA of €1.8 million for the trailing twelve-month period ended December 31, 2021. The cash portion of the purchase price was financed by Converge's recent equity raise. The acquisition is expected to be immediately accretive to Converge, resulting in increased revenue and adjusted EBITDA.
Converge Technology Solutions Corp. (TSX:CTS) completed the acquisition of VisuCom GmbH on February 9, 2022. Annuncio • Jan 12
Converge Technology Solutions Corp. (TSX:CTS) acquired Paragon Development Systems, Inc. from Mason Wells, Inc. for $52 million. Converge Technology Solutions Corp. (TSX:CTS) acquired Paragon Development Systems, Inc. from Mason Wells, Inc. for $52 million on January 10, 2022. Consideration for the purchase consisted of $52 million in cash paid at closing. Positive net working capital was also paid out at closing. The purchase multiple would be approximately 5.8 times adjusted EBITDA for the trailing twelve-month period ended November 30, 2021. The cash portion of the purchase price was financed by Converge's recent equity. Paragon Development Systems, Inc. generated revenue of approximately $187 million (CAD 239 million) with an adjusted EBITDA of $8.9 million (CAD 11.4 million) for the trailing twelve-month period ended November 30, 2021. The acquisition is expected to be immediately accretive to Converge, resulting in increased revenue and adjusted EBITDA. Canaccord Genuity Group served as the exclusive financial advisor to Paragon Development Systems Inc. and Mason Wells. Martin Wolf LLC served as financial advisor while Jordan Taylor of Holland & Knight LLP served as legal advisor.
Converge Technology Solutions Corp. (TSX:CTS) completed the acquisition of Paragon Development Systems, Inc. from Mason Wells, Inc. on January 10, 2022. Board Change • Dec 31
High number of new directors Independent Director Darlene Kelly was the last director to join the board, commencing their role in 2021.