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Converge Announces Intention to Make Normal Course Issuer Bid

FOR IMMEDIATE RELEASE

December 4, 2019 – VANCOUVER, BRITISH COLUMBIA AND TORONTO, ONTARIO, CANADA – Converge Technology Solutions Corp. (“Converge” or the “Company”) (TSXV: CTS) (FSE:0ZB) (OTCQX:CTSDF) announces that it has filed a Notice of Intention to Make a Normal Course Issuer Bid with the TSX Venture Exchange (“TSXV”), the implementation of which remains subject to TSXV approval. Pursuant to the proposed normal course issuer bid (“NCIB”), Converge proposes to purchase for cancellation through the facilities of the TSXV and/or permitted alternative trading systems, from time to time over the next 12 months, up to an aggregate of 4,025,120 of its issued and outstanding common shares (each, a “Common Share”), being 5% of the issued and outstanding Common Shares as of December 3, 2019.

The NCIB will commence three trading days after Converge receives TSXV approval and will remain in effect until the earlier of: (i) the date that is 12 months following commencement of the NCIB, (ii) the date upon which Converge acquires the maximum number of Common Shares permitted under the NCIB, or (iii) the date upon which Converge provides written notice of termination of the NCIB to the TSXV. Converge may not purchase more than 2% of the issued and outstanding Common Shares during any 30-day period, which as at December 3, 2019 represented 1,610,048 Common Shares.

Purchases of Common Shares under the NCIB will be made by Hampton Securities (“Hampton”) in accordance with the applicable policies of the TSXV at the prevailing market price of such Common Shares at the time of purchase. All Common Shares acquired by the Company under the NCIB will be cancelled. The Company is implementing the NCIB because it believes that, from time to time, the market prices of its common shares may not fully reflect the underlying value of the Company’s business and its future business prospects. Such purchases will be in the best interests of the Company and will be a desirable use of corporate funds.


About Converge
Converge Technology Solutions Corp. combines innovation accelerators and foundational infrastructure solutions to deliver best-of-breed solutions and services to customers. The Company is building a platform of regionally-focused Hybrid IT solutions providers to enhance the ability to provide multi-cloud solutions, blockchain, resiliency, and managed services, enabling Converge to address the business and IT issues that public and private-sector organizations face today. For more information, visit https://www.convergetp.com.

For further information contact:
Mary Anne Palangio                                                      Virtus Advisory Group
Chief Financial Officer                                                   Shareholder Inquiries
Converge Technology Solution Corp.                         Email: converge@virtusadvisory.com
Email: investors@convergetp.com                              Phone: 416-644-5081
Phone: 416-360-1495

Notice to Reader: Forward-Looking Statements

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.

For a detailed description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s filing statement dated November 1, 2018 which is available on SEDAR under the Company’s profile at www.sedar.com in addition to the consolidated financial statements for the years ended December 31, 2018 and 2017 together with the corresponding Management’s Discussion and Analysis for additional risk factors described under “Risks and Uncertainties”.

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.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available.

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Converge Technology Solutions Reports Third Quarter 2019 Financial Results

FOR IMMEDIATE RELEASE

November 20, 2019 – VANCOUVER, BRITISH COLUMBIA AND TORONTO, ONTARIO, CANADA – Converge Technology Solutions Corp. (“Converge” or “Company”) (TSXV:CTS) (FSE:0ZB) (OTCQX:CTSDF), a Software Enabled Hybrid IT Solutions Provider, is pleased to provide its financial results for the three and nine month period ended September 30, 2019. All figures are in CAD dollars unless otherwise stated.

“As small and medium sized enterprises continue their journey towards cloud integration, converge continues to benefit strongly by guiding these organizations through the transition process,” said Shaun Maine, Chief Executive Officer of Converge Technology Solutions. “With 12.5% of our annualized gross revenue driven from monthly recurring cloud, managed services and annualized software revenue, our cloud strategy has become increasingly effective and the Converge family of companies continues to cross-sell opportunities to each others’ customers and generate new business between themselves. On a quarterly basis, we are seeing gross margins further reflect this growth in the high-margin segment of our cloud business and we are very pleased to report gross margins in excess of 24% in Q3, a significant shift from traditional Value Added Resellers. The Artificial Intelligence, Analytics, Cybersecurity, and RedHat Ansible roadshows that our President Greg Berard implemented around our Converge practice areas have driven hundreds of opportunities across the company and bodes well as we look forward to Q4 and into 2020.”

Mr. Maine continued, “We are pleased to announce that we are near completion of our Phase II strategy and we intend to initiate our Phase III strategy beginning in 2020 which is primarily focused on generating additional operating leverage and efficiencies, working towards further increasing our Adjusted EBITDA margin.”

Third Quarter 2019 Financial Highlights

  • Revenue for the three months ended September 30, 2019 was $144.5 million compared to $100.0 million for the same period in 2018, an increase of 44.4%. Revenue for the nine months ended September 30, 2019 was $473.1 million compared to $323.1 million for the same period in 2018, an increase of 46.4%.
  • Gross profit for the three months ended September 30, 2019 was $34.9 million or 24.1% compared to $20.2 million or 20.2% for the same period in 2018. Gross profit for the nine months ended September 30, 2019 was $108.2 million or 22.9% compared to $59.7 million or 18.5% for the same period in 2018.
  • Adjusted EBITDA1 for the three months ended September 30, 2019 was $5.8 million compared to an Adjusted EBITDA loss of $0.2 million for the same period in 2018. Adjusted EBITDA1 for the nine month period ended September 30, 2019 totaled $19.8 million compared to $10.7 million for the same period in 2018, an increase of 84.1%.

1 EBITDA and Adjusted EBITDA are non-IFRS financial measures and do not have any standardized meaning under IFRS. See “Use of Non-IFRS Financial Measures” below.

Key Items from the Third Quarter

  • Converge acquired Nordisk Systems Inc., a Northwest-based partner focused on infrastructure, cloud, security, analytics, business continuity and managed services solutions.
  • The Company appointed industry-leader Greg Berard as President of Converge to help further solidify the Company’s position as a leading provider of Red Hat and software solutions.
  • Converge’s family of companies named as Red Hat premier partners and selected by Red Hat Inc. to join its Apex partner program, allowing the Company to leverage new and innovative technologies that enable clients to achieve business goals that require the implementation of cloud solutions.

Key Items Subsequent to Quarter End

  • Converge acquired Datatrend Technologies Inc., a leading technology solutions provider located in the Minneapolis/St. Paul region, focused on Next Gen Data Center, Hybrid Cloud, Infrastructure, Multi-Site IT Deployments, and ISV/OEM solutions.
  • Converge acquired Essex Technology Group, Inc. (“Essextec”), a leading Wall Street-based cloud, cognitive, and cybersecurity solution provider in the Northeast US. This acquisition transitioned Essextec from being a key strategic partner in the Converge family of companies to being a fully owned subsidiary of Converge.
  • Converge acquired VSS Holdings, LLC a Northeast based partner specializing in managed services, technology solutions, IT portfolio management and consulting services. This marked the eleventh acquisition completed by Converge since October 2017.

Third Quarter Conference Call
The Company will host a conference call featuring management’s quarterly remarks and follow-up question and answer period.
A recording of the call will be available and posted on the Company’s website. Dial-in details can be found below.

Conference Call Details:
Date: Thursday, November 21st, 2019
Time: 9:00 AM Eastern Time
Participant Dial-in Numbers:
Local – Toronto (+1) 416 764 8609
Toll Free – North America (+1) 888 390 0605
Conference ID: 59985193
Recording Playback Numbers:
Toronto (+1) 416 764 8677
Toll Free – North America (+1) 888 390 0541
Passcode: 985193 #
Expiry Date: Thursday, November 28, 2019 at 11:59pm

Quarterly and Annual Results Materials
The Company’s outlook is contained in its MD&A for the three and nine months ended September, 2019, which is available along with the 2019 consolidated financial statements, at www.convergetp.com and at www.sedar.com.

Summary of Consolidated Financial Results (in thousands of dollars)

    For the three months

ended September 30,

  For the nine months

ended September 30,

  2019 2018 2019 2018  
Revenues $ 144,504 $ 100,044 $ 473,091 $ 323,105  
Cost of sales   109,615   79,812   364,861   263,458  
Gross profit   34,889   20,232   108,230   59,647  
                   
Selling, general and administrative expenses   31,342   21,119   92,777   50,506  
Income before the following:   3,547   (887)   15,453   9,141  
                   
Depreciation and amortization   3,225   1,306   8,409   3,250  
Finance expense, net   3,880   1,608   10,527   4,998  
Change in fair value of contingent consideration   2,140   190   2,140   7,633  
Transaction costs – acquisitions, including retention bonuses   843    

2,157

  4,327    

4,685

 
Initial public offering costs     385     660  
Other expense   466   61   919   99  
Net loss before taxes $ (7,007) $ (6,594) $ (10,889) $ (12,185)  
 

Income tax expense

  70   182   1,544   1,854  
 

Net loss

  (7,077)   (6,776)   (12,433)   (14,039)  
Exchange loss (gain) on translation of foreign operations   155   80   (43)   222  
Comprehensive loss $ (7,232) $ (6,856) $ (12,390) $ (14,261)  
 

EBITDA1

 

$

 

1,446

 

$

 

(2,982)

 

$

 

11,535

 

$

 

(2,328)

 
Adjusted EBITDA1 $ 5,827 $ (189) $ 19,790 $ 10,749  
                   
    1 EBITDA and Adjusted EBITDA are non-IFRS financial measures and do not have any standardized meaning under IFRS. See

 “Use of Non-IFRS Financial Measures” below.

 
   

About Converge

Converge Technology Solutions Corp. combines innovation accelerators and foundational infrastructure solutions to deliver best-of-breed solutions and services to customers. The Company is building a platform of regionally-focused Hybrid IT solution providers to enhance their ability to provide multi-cloud solutions, blockchain, resiliency, and managed services, enabling Converge to address the business and IT issues that public and private-sector organizations face today.

For further information contact:

Mary Anne Palangio
Chief Financial Officer
Converge Technology Solutions Corp.
Email: investors@convergetp.com
Phone: 416-360-1495

Virtus Advisory Group
Shareholder Inquiries
Email: converge@virtusadvisory.com
Phone: 416-644-5081

Notice to Reader: Use of Non-IFRS Financial Measures and Forward-Looking Statements
1. Non-IFRS Financial Measures

In this news release, management uses certain non-IFRS measures to evaluate the performance of the Company. The term “Adjusted EBITDA” does not have any standardized meaning prescribed within IFRS and therefore may not be comparable to similar measures presented by other companies. Such measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS such as net income. Adjusted EBITDA is defined as gross profit less selling, general and administrative expenses, and corresponds to income before income tax, depreciation and amortization, finance expenses, change in fair value of contingent consideration, transaction costs for acquisitions, initial public offering costs and other non-operating expenses.

Management believes Adjusted EBITDA is an important indicator as it excludes certain items that are non-cash expenses, items that cannot be influenced by management in the short term and items that do not impact core operating performance, demonstrating the Company’s ability to generate liquidity through operating cash flow to fund working capital needs, service outstanding debt and fund future capital expenditures. Adjusted EBITDA is used by some investors and analysts for the purposes of valuing an issuer. The intent of Adjusted EBITDA is to provide additional useful information to investors and analysts and is also used by management as an internal performance measurement. A reconciliation of Adjusted EBITDA to net income is contained in the MD&A (see “Non-IFRS Financial Measures”).

2. Forward-Looking Information

This press 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.

For a detailed description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s filing statement dated April 1st, 2019 which is available on SEDAR under the Company’s profile at www.sedar.com in addition to the consolidated financial statements for the years ended December 31, and 2017 together with the corresponding Management’s Discussion and Analysis for additional risk factors described under “Risk Management”.

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.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available.

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Converge Technology Solutions Corp. Acquires VSS, LLC

FOR IMMEDIATE RELEASE

November 18, 2019 – TORONTO, ONTARIO, CANADA – Converge Technology Solutions Corp. (“Converge” or “the Company”) (TSXV:CTS) (FSE:0ZB) (OTCQX:CTSDF) announced today that it has acquired all of the voting and economic membership interests of VSS Holdings, LLC (“VSS”), a Northeast based partner focused on managed services, technology solutions, IT portfolio management, and consulting services. VSS brings its customers and highly skilled teams comprised of experienced technology experts, business consultants, and industry thought leaders to Converge’s fast growing platform.

VSS CEO, Robert L. Jernoske, Jr., will continue in his role along with the existing VSS management team. Working with VSS, Converge will look to introduce its Software Enabled Hybrid IT solutions including identity-based enterprise Blockchain, cognitive, cybersecurity, resiliency managed services, and multi-cloud solutions to existing and new VSS customers while leveraging VSS specializations ranging from virtualization, cybersecurity, power systems, managed services, and end-to-end data center solutions and services to Converge clients across North America.

Since 1990, VSS has been helping clients transform their business using people, process, and technology. After nearly three decades, VSS has successfully developed a culture that is passionate about technology solutions and services. VSS aims to deliver its customers sustainable technologies implemented by its team of experts to drive business results and deliver on promises to clients and industry partners.

“VSS is now poised to deliver a more widely-based platform of services to its customers while still offering its top-of-the-line customer service and white glove treatment to ensure that their business objectives are met or exceeded,” said Robert L. Jernoske, Jr., CEO of VSS. “We are excited to add Converge’s platform of offerings to new and existing customers.”

“We look forward to VSS joining the Converge family of companies,” said Shaun Maine, CEO of Converge. “’VSS sales strength in the financial services industry greatly enhances our capabilities in becoming a dominant software-enabled Hybrid IT provider in the New York and Mid-Atlantic marketplace as it builds on the platform we have created there with our previous acquisitions, Essex Technology Group and Lighthouse Computer Services. VSS also brings a level of expertise around managed services that will allow us to continue to drive value with our Converge private cloud offerings to our clients.”

VSS marks the eleventh 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.; and Datatrend Technologies, Inc.


About Converge

Converge Technology Solutions Corp. combines innovation accelerators and foundational infrastructure solutions to deliver best-of-breed solutions and services to customers. The Company is building a platform of regionally-focused Hybrid IT solutions providers to enhance their ability to provide multi-cloud solutions, blockchain, resiliency, and managed services, enabling Converge to address the business and IT issues that public and private-sector organizations face today. For more information, visit https://www.convergetp.com.

About VSS, LLC

As a technology solutions provider, VSS LLC makes it their mission to understand their customers’ current needs, as well as future goals. Through that understanding, their distinguished engineering team is able to architect visionary infrastructure which solves both the immediate needs, and future business initiatives of their customers. For more information, visit http://thinkvss.com.


For further information contact:

Mary Anne Palangio                                                                 Virtus Advisory Group
Chief Financial Officer                                                               Shareholder Inquiries
Converge Technology Solutions Corp.                                    Email:   converge@virtusadvisory.com
Email:  investors@convergetp.com                                         Phone:  416-644-5081
Phone:  416-360-1495

Notice to Reader:  Use of Forward-Looking Statements

  1. 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.

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Converge Technology Solutions Announces Date for Third Quarter 2019 Financial Results Conference Call

FOR IMMEDIATE RELEASE

November 14, 2019 – TORONTO, ONTARIO – Converge Technology Solutions Corp. (“Converge” or “the Company”) (TSXV:CTS)  (FSE:0ZB) (OTCQX: CTSDF) is pleased to announce that it will release the results for its third quarter for the period ended September 30th, 2019 on Wednesday November, 20th, 2019 after market close. The Company will subsequently hold a conference call on Thursday, November 21st, 2019 at 9:00am EST hosted by Shaun Maine, Chief Executive Officer and Mary Anne Palangio, Chief Financial Officer. A question and answer session will follow the corporate update.

Conference Call Details:

Date: Thursday, November 21st, 2019
Time: 9:00 AM Eastern Time

Participant Dial-in Numbers:
Local – Toronto (+1) 416 764 8609
Toll Free – North America (+1) 888 390 0605
Conference ID: 59985193

Recording Playback Numbers:
Toronto (+1) 416 764 8677
Toll Free – North America (+1) 888 390 0541
Passcode: 985193 #
Expiry Date: Thursday, November 28, 2019 at 11:59pm  

A live audio webcast and archive of the conference call will be available by visiting the Company’s website at https://convergetp.com/investor-relations/. Please connect at least 15 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast.


About Converge Technology Solutions Corp.

Converge Technology Solutions Corp. combines innovation accelerators and foundational infrastructure solutions to deliver best-of-breed solutions and services to customers. The Company is building a platform of regionally-focused Hybrid IT solutions providers to enhance their ability to provide multi-cloud solutions, blockchain, resiliency, and managed services, enabling Converge to address the business and IT issues that public and private-sector organizations face today. For more information, visit https://www.convergetp.com.

For further information contact:

Mary Anne Palangio
Chief Financial Officer
Converge Technology Solutions Corp.
investors@convergetp.com 
(416) 360-1495

Canadian Investor Contact:

Virtus Advisory Group
converge@virtusadvisory.com
416-644-5081

U.S. Investor Contact:

Gateway Investor Relations
CTS@gatewayir.com
949-574-3860

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Converge Technology Solutions Acquires Essex Technology Group, Inc.

Converge Technology Solutions has acquired Essextec, a leading cloud, cognitive, and cybersecurity solution provider in the Northeast US.

FOR IMMEDIATE RELEASE

October 9, 2019 – TORONTO, ONTARIO, CANADA Converge Technology Solutions Corp. (“Converge” or ”Company”) (TSXV:CTS)  (FSE:0ZB) (OTCQX:CTSDF) announced today that it has acquired Essex Technology Group, Inc. (“Essextec”), a Wall Street-based cloud, cognitive, and cybersecurity solution provider in the Northeast US. 

Converge has and will continue to leverage Essextec’s artificial intelligence, cybersecurity and data analytics offerings for use by Converge’s existing customer base and bring Software Enabled Hybrid IT solutions across a range of vendors to Essextec’s customer base, thereby continuing to add value to both firms.  Essextec brings its customers intellectually curious and highly skilled teams made up of experienced technology and cybersecurity experts, business consultants, and industry thought leaders.  Converge is a leading Software Enabled Hybrid IT solutions provider representing the intersection of innovation accelerators and foundational infrastructure solutions.

“The team at Essextec aligns to our current solution areas and helps organizations solve IT challenges by applying innovative cloud, cognitive, and cybersecurity technologies,” said Greg Berard, President of Converge. “The skills and capabilities that Essextec brings to our client base across North America will help us continue to differentiate ourselves and drive significant value as we position the right strategic solutions with our key technology partners and clients.”   

A significant participant in the IBM partner ecosystem, Essextec stays on the cutting edge, guiding customers through digital transformations with a focus on building secure cognitive applications in hybrid cloud environments. Whether working on-premise or in a public, private, or hybrid cloud environment, Essextec brings the skills and expertise to properly architect secure, effective solutions. Utilizing modern machine learning and artificial intelligence capabilities, the Essextec team leads customers in applying natural language processing, conversational user interfaces, voice interaction, image recognition, and text analytics to real business problems.

“We are excited for the Converge family of companies to have continued access to Essextec’s capabilities for our customers and to make Converge’s Hybrid IT services accessible to the Essextec customer base,” said Shaun Maine, CEO of Converge. “Essextec has proven its ability to deliver Artificial Intelligence, CyberSecurity and Cloud solutions to forward-thinking organizations, and we look forward to continuing to add these to the Converge Hybrid IT capabilities and offerings.  Converge has been working together with the Essextec team since Q4 of last year, and we are delighted to now bring Essextec into the Converge family.”

Converge’s portfolio of companies also includes Corus Group, LLC; Northern Micro, Inc.; Becker-Carroll, Inc; Key Information Systems, Inc.; BlueChipTek, Inc.; Lighthouse Computer Services, Inc.; Software Information Systems, LLC; Nordisk Systems, Inc.; and Datatrend Technologies, Inc.

 

About Converge Technology Solutions Corp.

Converge Technology Solutions Corp. combines innovation accelerators and foundational infrastructure solutions to deliver best-of-breed solutions and services to customers. The Company is building a platform of regionally-focused Hybrid IT solutions providers to enhance the ability to provide multi-cloud solutions, cybersecurity, artificial intelligence (“AI”), identity management/enterprise blockchain, resiliency, and managed services, enabling Converge to address the business and IT issues that public and private-sector organizations face today. For more information, visit https://www.convergetp.com.

About Essextec
Essextec is a Wall Street-based cloud, cognitive, and cybersecurity solutions provider. Essextec brings its customers a team of intellectually curious and highly skilled individuals made up of experienced technology and cybersecurity experts, business consultants, and industry thought leaders. For more information, visit http://www.essextec.com.

For further information contact:

Mary Anne Palangio                                                             Virtus Advisory Group

Chief Financial Officer                                                         Shareholder Inquiries

Converge Technology Solutions Corp.   Email: converge@virtusadvisory.com

Email:  investors@convergetp.com                                     Phone:  416-644-5081

Phone:  416-360-1495

Forward-Looking Information
This press 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.

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.

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Converge Technology Solutions Corp. Acquires Datatrend Technologies, Inc. and Announces Organizational Changes

Datatrend Technologies, Inc. is a leading technology solution provider headquartered in the Minneapolis/St. Paul area, focused on Next Gen Data Center, Hybrid Cloud, Infrastructure, Multi-Site IT Deployments, and ISV/OEM solutions.

FOR IMMEDIATE RELEASE

October 3, 2019 – TORONTO, ONTARIO, CANADA – Converge Technology Solutions Corp. (“Converge” or “the Company”) (TSXV:CTS)  (FSE:0ZB) (OTCQX:CTSDF) announced today that it has acquired Datatrend Technologies, Inc. (“Datatrend“), a leading technology solutions provider headquartered in the Minneapolis/St. Paul area.  Datatrend brings its customers and highly skilled teams made up of experienced technology experts, business consultants, and industry thought leaders to Converge’s fast growing platform.

Charlie Cox, CEO of Datatrend, will continue to lead the business alongside the existing Datatrend management team. Working with Charlie and his team, Converge will look to introduce its Software Enabled Hybrid IT solutions including identity-based enterprise blockchain, cognitive, cybersecurity, resiliency managed services and multi-cloud solutions to existing and new Datatrend customers while leveraging the Datatrend Hybrid IT solutions including Next Gen data center, Hybrid Cloud, infrastructure, multi-site IT Deployments and ISV/OEM solutions to Converge clients across North America. 

For over 32 years, Datatrend has delivered technology infrastructure solutions from the data center to the edge of the network in order to help businesses with their digital transformation journey and drive impactful business results. Datatrend provides consulting, planning, designing, implementation, integration, project management and staffing for next generation data centers, multi-cloud environment, cabling and wireless solutions for multi-site rollouts and the Internet of Things, as well as for ISV’s, OEM’s and service providers.

“Datatrend has successfully built a reputation over the years as a leader in delivering technology infrastructure solutions from the data center to the edge of the network, while developing long-lasting personal relationships with our client base,” said Charlie Cox, President and CEO of Datatrend. “We look forward to working with Converge to help develop an organization that can better serve our customers across North America and are confident that this new business venture will be beneficial to all stakeholders involved.”

“We are thrilled that Datatrend is joining the Converge family of companies,” said Shaun Maine, CEO of Converge. “Their reputable team supports businesses across the nation with notable experience advancing large enterprise financial services, travel, and hospitality customers through their enterprise class configuration centers, project management skills and certifications. Datatrend strengthens our central geographical coverage, while its extensive experience with enterprise clients will prove valuable across the organization.”

Additionally, the Company is pleased to announce the following organizational changes as the Company plans for its Phase 3 consolidation of back-office operations and standardization of tools and processes.   Cory Reid will lead this initiative as Chief Operating Officer (“COO”) and oversee all of Finance, Operations, and HR, while concurrently leading integration initiatives for new acquisitions. Don Cuthbertson, co-founder of Converge, will continue to set technical direction for the Company and its cloud team as Chief Technology Officer (“CTO”).  Don will also continue in his role as President of Canada while being at the forefront of new business models presented by Converge’s enterprise blockchain initiatives around identity.

Datatrend marks the tenth transaction 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.; and Essex Technology Group, Inc.

 

About Converge

Converge Technology Solutions Corp. combines innovation accelerators and foundational infrastructure solutions to deliver best-of-breed solutions and services to customers. The Company is building a platform of regionally focused Hybrid IT solutions providers to enhance their ability to provide multi-cloud solutions, blockchain, resiliency, and managed services, enabling Converge to address the business and IT issues that public and private-sector organizations face today. For more information, visit https://www.convergetp.com.

 

About Datatrend Technologies, Inc. 

As a solutions integrator, Datatrend delivers IT solutions to help organizations leverage technology to drive impactful business outcomes.  Datatrend does this by delivering technology infrastructure solutions from the data center to the edge of the network.  By providing planning, design, implementation, integration and project management for next generation data centers, cloud environments, cabling and wireless solutions for multi-site rollouts and the Internet of Things, as well as solutions for ISVs, OEMs and service providers, Datatrend knows how to make IT matter for business.  For more information, visit http://datatrend.com.

 

For further information contact:

Mary Anne Palangio                                                            Virtus Advisory Group
Chief Financial Officer                                                        Shareholder Inquiries
Converge Technology Solutions Corp.   Email: converge@virtusadvisory.com
Email:  investors@convergetp.com                                    Phone:  416-644-5081
Phone:  416-360-1495

 

Notice to Reader:  Forward-Looking Statements

  1. 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.

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Converge Technology Solutions Corp.Converge Technology Solutions Corp. Acquires Datatrend Technologies, Inc. and Announces Organizational Changes
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Converge Technology Solutions Announced as Red Hat Apex Partner

FOR IMMEDIATE RELEASE

August 27, 2019 – TORONTO, ONTARIO, CANADA – Converge Technology Solutions Corp. (“Converge” or “the Company”) (TSXV:CTS)  (FSE:0ZB) (OTCQX:CTSDF) is pleased to announce that the Converge family of companies have been named as Red Hat Premier Partners, and have been selected by Red Hat, Inc. to join their Apex Partner Program. As part of Red Hat’s partner ecosystem, Converge has demonstrated that it is an expert business partner with a significant focus on Red Hat related projects. Red Hat Premier Partners are well trained and highly committed to working closely with Red Hat on business opportunities.

As a member of the program, Converge will leverage new and innovative technologies that enable clients to achieve business goals that require the implementation of cloud services. In order to become a member of the Apex Partner Program, a company must support clients across the three pillars of Red Hat’s business: hybrid cloud infrastructure; cloud-native development; and automation and management. Collectively, with more than 2,300 individual partner certifications across such solution areas, Red Hat Apex Partners are enabled to become trusted advisors to customers along their business transformation journey.

“Converge is well positioned to roll out Red Hat’s multi-cloud enabling solutions across North America,” said Shaun Maine, Chief Executive Officer of Converge. “Our relationship with Red Hat has been heavily influenced by our acquisition of Lighthouse and Greg Berard’s outstanding work in growing Lighthouse’s Red Hat revenue in 2018. As President of Converge, Greg Berard has been tasked with advancing the Company as a software enabled Hybrid IT Provider.”

Mr. Maine continued, “We have already witnessed Red Hat contribute a growing portion of our software revenue base, and we expect this collaboration to add to that base moving forward. As we continue to help businesses along their cloud journey, the Red Hat Apex Partner program will play a key role in allowing our customers to enable multi-cloud solutions through Ansible and OpenShift regardless of their cloud platform.”

Martin, Vice President of North America Partner Sales added, “Red Hat’s partner ecosystem is a vital component in delivering powerful, flexible and open solutions, to global enterprises. We’re pleased to have Converge as an Apex and Premier Business Partner, and look forward to delivering open innovation to our joint customers with them.”

About Converge

Converge Technology Solutions Corp. combines innovation accelerators and foundational infrastructure solutions to deliver best-of-breed solutions and services to customers. The Company is building a platform of regionally-focused Hybrid IT Solutions Providers to enhance the ability to provide multi-cloud solutions, blockchain, resiliency, and managed services, enabling Converge to address the business and IT issues that public and private-sector organizations face today. For more information, visit https://www.convergetp.com.

For further information contact:

Mary Anne Palangio                                                                       Virtus Advisory Group
Chief Financial Officer                                                                    Shareholder Inquiries
Converge Technology Solutions Corp.                                         Email:   converge@virtusadvisory.com
Email:  investors@convergetp.com                                              Phone:  416-644-5081
Phone:  416-360-1495

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.

Red Hat, the Red Hat logo Ansible and OpenShift are trademarks or registered trademarks of Red Hat, Inc. or its subsidiaries in the U.S. and other countries.

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Converge Technology Solutions Corp.Converge Technology Solutions Announced as Red Hat Apex Partner
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Converge Technology Solutions Announces Date for Second Quarter 2019 Financial Results Conference Call

FOR IMMEDIATE RELEASE

August 13th, 2019 – TORONTO, ONTARIO – Converge Technology Solutions Corp. (“Converge” or “the Company”) (TSXV:CTS) (FSE:0ZB) (OTCQX: CTSDF) is pleased to announce that it will release the results for its second quarter for the period ended June 30th, 2019 on Wednesday, August 21st, 2019 after market close. The Company will subsequently hold a conference call on Thursday, August 22nd, 2019 at 9:00am EST hosted by Shaun Maine, Chief Executive Officer and Mary Anne Palangio, Chief Financial Officer. A question and answer session will follow the corporate update.

 

Conference Call Details:
Date: Thursday, August 22nd, 2019
Time: 9:00 AM Eastern Time

Participant Dial-in Numbers:
Local – Toronto (+1) 416 764 8609
Toll Free – North America (+1) 888 390 0605
Conference ID: 82821225

Recording Playback Numbers:
Toronto (+1) 416 764 8677
Toll Free – North America (+1) 888 390 0541
Passcode: 821225 #
Expiry Date: Thursday, August 29th, 2019 11:59 PM

 

A live audio webcast and archive of the conference call will be available by visiting the Company’s website at https://convergetp.com/investor-relations/. Please connect at least 15 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast.

 

About Converge Technology Solutions
Converge Technology Solutions is building a platform of regionally focused Hybrid IT solution providers that deliver best-of-breed solutions and services to clients. These capabilities are enhanced by advanced expertise in cloud solutions, artificial intelligence, blockchain, resiliency, and managed services, enabling Converge to address the business and IT challenges that public and private-sector organizations face today. To learn more about Converge, visit www.convergetp.com
For further information contact:

 

Mary Anne Palangio
Chief Financial Officer
Converge Technology Solutions Corp.
Email: investors@convergetp.com
Phone: (416) 360-1495

Virtus Advisory Group
Shareholder Inquiries
Email: converge@virtusadvisory.com
Phone: 416-644-5081

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Converge Technology Solutions Corp.Converge Technology Solutions Announces Date for Second Quarter 2019 Financial Results Conference Call
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Converge Technology Solutions Corp. Receives DTC Eligibility and Initiates Comprehensive U.S. Investor Relations Program

FOR IMMEDIATE RELEASE

TORONTO, ONTARIO, CANADA – July 30, 2019 – Converge Technology Solutions Corp. (“Converge” or the “Company”) (TSXV: CTS) (OTCQX: CTSDF) (FSE: 0ZB) is pleased to announce that its common shares have received Depository Trust Company (“DTC”) full-service eligibility within the United States. Subsequently, the Company has initiated a comprehensive U.S. investor relations program led by Gateway Investor Relations (“Gateway”), with supplementary efforts by Stonegate Capital Partners Inc. (“Stonegate”).

Being a subsidiary of the Depository Trust & Clearing Corporation, DTC was created with the intent to reduce costs and provide clearing and settlement efficiencies. DTC eligibility enables Converge common shares to be distributed, settled and serviced through DTC’s automated processes. Overall, this is expected to simplify the process of trading, while enhancing the liquidity of Converge’s common shares in the U.S.

To ensure the appropriate engagement of U.S. investors, the Company has retained Gateway, a full-service U.S. firm specializing in high-level capital markets consulting, corporate communications and investor outreach. The firm will work closely with Converge management to deploy a U.S.-focused capital markets program, while securing invitations to select financial conferences over the next 12 months (including the Gateway Conference). Activities will include: refining company and investment-oriented communications and corporate positioning; strategic advisory services; introductions to U.S.-based institutional investors and analysts; and, organizing investor meetings within the U.S.

Under the terms of the agreement, Converge will compensate Gateway as follows: USD$6,000 per month for the first three months; and USD$9,000 per month thereafter, with an initial term of six months which converts to a month-to-month agreement beyond the initial term. Following the initial term, either party may terminate the agreement by providing 60 days written notice. No stock is being offered as part of the agreement.

In addition to Gateway, Converge has retained Stonegate, a capital markets advisory firm. Stonegate will provide supplementary advisory and institutional outreach services, with the objective of strengthening the Company’s profile among U.S. institutional investors. The firm will work with Converge to refine messaging, target buy-side institutional investors and organize meetings with such targets.

Terms of the engagement call for Converge to compensate Stonegate on a month-to-month basis at the rate of USD$3,000 per month, subject to termination upon 10 days’ notice by either party. Stonegate and/or its employees, officers, directors and owners do not have any interest, directly or indirectly, in Converge or its securities.

“We believe our stakeholders will benefit from these experienced teams of financial communication professionals to help us more effectively navigate the U.S. capital markets environment and generate greater awareness of Converge by U.S. investors and analysts,” said Shaun Maine, CEO of Converge. “As a leading North American Hybrid IT Solutions Provider with an expanding customer footprint in the U.S., we believe that the Converge story will resonate with the U.S. investment community, while DTC eligibility will optimize the trading process for our U.S. employees and investors.”

These efforts will be in conjunction with Virtus Advisory Group (“Virtus”), which currently leads the Company’s Canadian Investor Relations Program. Virtus has been executing a strategic corporate communications program increasing Converge’s exposure by organizing investor meetings with industry stakeholders and investors across Canada. Virtus and its principals act at arm’s length to the Company and currently hold 44,800 shares of Converge. From time to time, Virtus may or may not be in possession of Converge shares.

 

About Gateway Investor Relations

Gateway (formerly Liolios) is a leading strategic financial communications and capital markets advisory firm. For more than 20 years, the firm has delivered superior performance in strategic consulting, corporate messaging and positioning, investor awareness, and analyst and financial press coverage. Gateway executives have extensive experience in capital markets and financial communications, and represent clients in a wide range of industries, including technology, consumer, industrials, financial services, and business services. To learn more, please visit www.gatewayir.com.

 About Stonegate Capital Partners

Stonegate provides corporate communications, corporate access and capital markets advisory services. Stonegate is a privately-owned firm based in Dallas, Texas. To learn more, please visit www.stonegateinc.com.

About Virtus Advisory Group

Virtus is a privately-owned Toronto-based consulting firm, providing select private and publicly listed companies with business consulting, capital markets strategy and investor relations services. To learn more, please visit www.virtusadvisory.com.

About Converge

Converge Technology Solutions Corp. combines innovation accelerators and foundational infrastructure solutions to deliver best-of-breed solutions and services to customers. The Company is building a platform of regionally-focused Hybrid IT Solutions Providers to enhance the ability to provide multi-cloud solutions, cybersecurity, artificial intelligence (‘AI’), identity management/enterprise blockchain, resiliency, and managed services, enabling Converge to address the business and IT issues that public and private-sector organizations face today. For more information, visit www.convergetp.com.

 

 

Company Contacts:

Mary Anne Palangio                                                       

Chief Financial Officer                                                   

Converge Technology Solutions Corp.                                   

investors@convergetp.com                                         

416-360-1495

 

John Flores

Executive Vice President

Converge Technology Solutions Corp.

investors@convergetp.com 

210-744-4460

  

Canadian Investor Contact:

 Corey Cohen or Babak Pedram

Virtus Advisory Group

converge@virtusadvisory.com

416-644-5081

  

U.S. Investor Contact:

Matt Glover or Tom Colton

Gateway Investor Relations

CTS@gatewayir.com

949-574-3860

 

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Converge Technology Solutions Corp.Converge Technology Solutions Corp. Receives DTC Eligibility and Initiates Comprehensive U.S. Investor Relations Program