TORONTO, Dec. 21, 2020 /CNW/ - Converge Technology
Solutions Corp. ("Converge" or "the Company") (TSXV:
CTS) (FSE: 0ZB) (OTCQX: CTSDF) a national platform of regionally
focused Hybrid IT solution providers in the U.S. and Canada, is pleased to announce that it has
signed a definitive agreement to acquire CarpeDatum Consulting,
Inc., a national IBM Analytics consulting organization and Alteryx
Preferred Partner, headquartered in Denver, CO with offices in Los Angeles and Dallas. The acquisition is anticipated to
close January 4th,
2021.
CarpeDatum builds best in class solutions around analytics
for customers across every industry. It has over 20 years of
successful deployment experience around planning and forecasting,
enterprise reporting, and predictive analytics. The addition of
CarpeDatum to the Converge analytics practice will give the Company
an array of new capabilities regarding AI, analytics, and
performance management to allow it to continue to scale and expand
its current offerings throughout North
America.
"We made our name by building solutions for customers that allow
them to dig into their data and use it to its fullest extent," said
John Martin, Managing Partner at
CarpeDatum. "By joining Converge, we can bring that skillset and
the tools we built from the ground up to more organizations so that
they can realize the benefits these technologies bring with
them."
"Analytics and AI are no longer the future of IT; they have
become the present," remarked Shaun
Maine, CEO of Converge. "CarpeDatum has innovative tools and
techniques that make these technologies accessible and easy to
adopt and leverage to create business outcomes. The combination of
our existing AI and machine learning capabilities combined with
CarpeDatum's new skills around financial planning and forecasting
will be a great addition to our AI and Analytics practice to allow
us to scale and grow our Central and Western Regions. We look
forward to bringing their expertise and offerings to our customers
across North America."
CarpeDatum had trailing twelve month revenue of approximately
CAD$6.7 million for the period ending
November 30, 2020 with adjusted
EBITDA of approximately CAD$1.8
million. The purchase price will consist of US$5.0 million (approx. CAD$6.4 million), as follows: (i)
US$1.25 million in cash at
closing; (ii) up to an aggregate of US$2.5 million in earn-out payments for the three
years following closing of the acquisition based on the achievement
of certain milestones; and (iii) the issuance of a right to the
sellers to exchange their retained membership interests in
CarpeDatum (the "Retained Interests"), which consist solely of
Class B membership units and have no right to any economic or
voting participation in CarpeDatum, for an aggregate value of
US$1.25 million of Converge shares
(the "Exchange Right"), subject to certain conditions.
CarpeDatum will mark the fifteenth acquisition completed by
Converge since October 2017.
Converge's family of companies also includes Corus Group, LLC;
Northern Micro, Inc.; 10084182 Canada Inc. operating as
Becker-Carroll; Key Information Systems, Inc.; BlueChip Tek, Inc.;
Lighthouse Computer Systems, Inc.; Software Information Systems
LLC.; Nordisk Systems, Inc.; Essex Technology Group, Inc.;
Datatrend Technologies, Inc.; VSS, LLC; Solutions P.C.D., Inc,
Unique Digital, Inc.; and Workgroup Connections, Inc.
About Converge
Converge Technology Solutions Corp. is
a North American software-enabled, Hybrid IT solution provider
focused on delivering industry-leading solutions and services.
Converge's regional sales and services organizations deliver
advanced analytics, cloud, cybersecurity, and managed services
offerings to clients across various industries. The Company
supports these solutions with talent expertise and digital
infrastructure offerings across all major IT vendors in the
marketplace. This multi-faceted approach enables Converge to
address the unique business and technology requirements for all
clients in the public and private sectors. For more information,
visit convergetp.com.
About CarpeDatum
CarpeDatum is a national IBM
Analytics consulting organization and Alteryx Preferred
Partner headquartered in Denver,
CO and the creator of the TM1Compare and TM1Connect
products. Founded 1997 by IT veterans, it has grown into what it is
today because of its deep domain expertise in data and analytics
and its staff of passionate individuals who seek to further what
organizations can do with their data.
Notice to Reader: Use of Forward-Looking
Statements
Forward-Looking Information
This news release contains
certain "forward-looking information" and "forward-looking
statements" (collectively, "forward-looking statements")
within the meaning of applicable Canadian securities legislation
regarding Converge and its business. Any statement that involves
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions, future events or
performance (often but not always using phrases such as "expects,"
or "does not expect," "is expected," "anticipates," or "does not
anticipate," "plans," "budget," "scheduled," "forecasts,"
"estimates," "believes," or intends," or variations of such words
and phrases or stating that certain actions, events or results
"may" or "could," "would," "might," or "will" be taken to occur or
be achieved) are not statements of historical fact and may be
forward-looking statements. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable, are subject to known and unknown
risks, uncertainties, and other factors which may cause the actual
results and future events to differ materially from those expressed
or implied by such forward-looking statements. Except as required
by law, Converge assumes no obligation to update the
forward-looking statements of beliefs, opinions, projections, or
other factors, should they change. The reader is cautioned
not to place undue reliance on forward-looking
statements.
Neither the TSX Venture Exchange nor its regulation services
provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Converge Technology Solutions Corp.
