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Converge Technology Solutions Corp. Named 2020 Ingram Micro Cloud Reseller Partner of the Year for North America

Converge was recently honored at the Ingram Micro Cloud Summit: The Digital Sessions

FOR IMMEDIATE RELEASE

June 18, 2020 – TORONTO, ONTARIO, CANADA – Converge Technology Solutions Corp. (“Converge” or “the Company”) (TSXV:CTS) (FSE:0ZB) (OTCQX:CTSDF), a national platform of regionally focused Hybrid IT solution providers (“ITSPs”) in the U.S. and Canada, is proud to announce that it received Ingram Micro Cloud’s 2020 Reseller of the Year Award for North America. The award was presented to Converge during Ingram Micro’s Cloud Summit: The Digital Sessions, which was held virtually this year.

These annual awards spotlight Ingram Micro Cloud partners worldwide who deliver platform solutions that drive digital transformation while demonstrating an outstanding level of innovation, sales success, performance, and best-in-class utilization of Ingram Micro’s Cloud Marketplace.

This award recognizes channel  reseller  partners who  achieved outstanding  success and   quantifiable business growth in 2019 by selling products from the Ingram Micro Cloud Marketplace to enable the digital transformation of their customers’ businesses.

“We congratulate Converge for winning this year’s Reseller of the Year award,” said Tim FitzGerald, Vice President of Channel Sales, Americas at Ingram Micro Cloud. “Together, we measure success by the revenue and growth of customers. Converge has consistently and significantly made a difference for numerous customers, and we look forward to helping them grow their cloud ecosystem.”

“This is a big moment for Converge,” said Greg Berard, President of Converge. “I’m so proud of all the work our team has done to earn this distinction from one of our significant strategic partners. This award is a testament to the success we had in 2019 with our clients around our multi-cloud strategy and an indicator that we will continue to work with Ingram Micro Cloud to create success and value for our customers.”

Cloud Summit: The Digital Sessions was Ingram Micro Cloud’s first-ever virtual event, welcoming VARs, MSPs, and ISVs to interact with and learn from each other in 40+ virtual sessions, as well as engage online with today’s emerging and established cloud providers and vendors.

 

About Converge

Converge Technology Solutions Corp. is a North American 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 Ingram Micro Cloud

Ingram Micro Cloud brings together innovators and problems solvers to help the world accomplish more. It facilitates and manages the cloud’s complex digital value chain—all powered by CloudBlue technology. Ingram Micro Cloud operates in 64 countries with over 55,000 reseller partners, and its Cloud Marketplace serves 6.5 million seats, offering more than 120 cloud solutions. With unmatched global reach, easy access to automated go-to-market and integration tools, deep technical expertise, and a curated selection of scalable SaaS and IaaS solutions, Ingram Micro Cloud helps vendors, resellers and managed service providers by offering More as a Service. Detailed information is available at www.IngramMicroCloud.com.

 

For further information contact:

Converge Technology Solutions Corp.
Email: investors@convergetp.com
Phone: 416-360-1495

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Converge Technology Solutions Corp. Named to CRN’s 2020 Solution Provider 500 List

Converge was recently ranked as the 50th largest Solution Provider

FOR IMMEDIATE RELEASE

June 4, 2020 – TORONTO, ONTARIO, CANADA – Converge Technology Solutions Corp. (“Converge” or “the Company”) (TSXV:CTS) (FSE:0ZB) (OTCQX:CTSDF) a national platform of regionally focused Hybrid IT solution providers (“ITSPs”) in the U.S. and Canada has announced that CRN®, a brand of The Channel Company, has ranked Converge within the top 50 on its 2020 Solution Provider 500 list. CRN releases the top 500 solution providers list annually which ranks leading IT channel partner organizations across North America by revenue. CRN’s Solution Provider 500 list serves as the industry’s benchmark for recognizing the top-performing technology integrators, strategic service providers, and IT consultants, and acts as a valuable resource for technology vendors looking to partner with top solution providers.

 Converge Technology Solutions Corp. was founded to provide customers across North America with accessible and leading-edge technology solutions. The Company maintains top tier relationships with numerous partners in the IT sphere, thus enabling and assisting with digital transformation across organizations. Since late 2017, the Company has brought together twelve organizations under its banner, and it continues to grow and expand its ability to support customers across the continent.

“I am extremely proud of the progress accomplished by the Converge family in a relatively short period of time, especially given that this recognition is a result of the hard work and dedication of every member of our organization,” said Shaun Maine, CEO of Converge Technology Solutions Corp. “We set out with the intent to build a premier software-enabled Hybrid ITSP and to be ranked as a top 50 Solution Provider by CRN reaffirms our impact across the industry. We remain enthusiastic as we execute on our business model and expect to continue to rise amongst CRN’s Solution Provider 500 list.”

“CRN’s Solution Provider 500 list showcases the top IT channel partner organizations across North America,” said Bob Skelley, CEO of The Channel Company. “This year, companies on this list represent a combined revenue of $393 billion, a data point that underscores the impact and influence these solution providers have on the IT industry. On behalf of The Channel Company, I’d like to congratulate these companies for their outstanding contributions to the growth and success of our industry.”

 

CRN’s complete 2020 Solution Provider 500 list is available online at www.CRN.com/SP500 and a sample from the list will be featured in the June issue of CRN Magazine.

 

About Converge

Converge Technology Solutions Corp. is a North American 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 The Channel Company

The Channel Company enables breakthrough IT channel performance with our dominant media, engaging events, expert consulting and education and innovative marketing services and platforms. As the channel catalyst, we connect and empower technology suppliers, solution providers and end users. Backed by more than 30 years of unequalled channel experience, we draw from our deep knowledge to envision innovative new solutions for ever-evolving challenges in the technology marketplace. www.thechannelcompany.com 

 

For further information contact:

Converge Technology Solutions Corp.
Email: 
investors@convergetp.com
Phone:  416-360-1495

 

Copyright ©2020. CRN is a registered trademark of The Channel Company, LLC.  All rights reserved.

 

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Converge Technology Solutions Corp. Announces New TrustBuilder Platform

Converge announces its intention to begin offering the Converge TrustBuilder Platform, a blockchain-

based solution toolkit, to help customers create secure trust ecosystems.

FOR IMMEDIATE RELEASE

May  19,  2020  –  TORONTO,  ONTARIO,  AND  GATINEAU,  QUEBEC,  CANADA  –  Converge Technology Solutions Corp. (“Converge” or “the Company”) (TSXV:CTS) (FSE:0ZB) (OTCQX:CTSDF) a national platform of regionally focused Hybrid IT solution providers (“ITSPs”) in the U.S. and Canada has announced, in connection with PROMPT, the creation of a trust ecosystem builder toolkit to be marketed as the Converge TrustBuilder Platform. This was made possible by Becker-Carroll, a Converge Company’s successful submission of its application for the platform to the Quebec Cybersecurity Innovation Program.

The Converge TrustBuilder Platform utilizes the new W3C verifiable credential standard and allows customers to create, manage, and monetize trust ecosystems. The Company is working closely with In- Sec-M (a national cybersecurity cluster), the Digital Identity Laboratory of Canada, and the Digital Identity and Authentication Council of Canada (DIACC) to ensure adherence to emerging industry standards and the Pan-Canadian Trust Framework (PCTF).

“With the discussion of a potential demand for digital passports due to the COVID-19 pandemic, this technology is now a priority, and we are proud to be contributing to its development. The Converge national platform, along with its approximate 200 sales professionals remain a great channel for ourselves and our vendors to launch new products. It is my opinion that we are uniquely qualified to solve the biggest problem that all highly innovative solutions face, and that is getting early adopters on-board and proving the value of the technology by building successes for them,” said Shaun Maine, Chief Executive Officer of Converge. “We would also like to thank the City of Gatineau, In-Sec-M, PROMPT, and the Quebec Government for creating this incredible innovation-fostering environment. We are thrilled to be a part of it, and we are dedicated to helping it succeed.”

“PROMPT is proud to support such a foundational project for Quebec in the strategic area of cybersecurity and digital identity. PROMPT’s mission is to generate innovation through collaboration and research and, in doing so, propel the emergence of world-class economic and technological leaders. The project submitted by Becker-Carroll is among the most promising and visionary, and it will certainly contribute to reinforcing Quebec’s position in the cybersecurity domain,” commented Luc Sirois, General Manager of PROMPT.

 

About PROMPT

PROMPT is a leading organization whose primary objective is to increase Québec’s Information and Communications Technologies (ICT) industry’s competitiveness by stimulating R&D partnerships. PROMPT is responsible for managing the Quebec Cybersecurity Innovation Program. For more information, visit promptinnov.com/en.

About Converge

Converge Technology Solutions Corp. is a North American 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.

For further information contact:

Converge Technology Solutions Corp.

Email: investors@convergetp.com

Phone: 416-360-1495

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Converge Technology Solutions Reports First Quarter 2020 Financial Results

FOR IMMEDIATE RELEASE

 May 13, 2020 – 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 month period ended March 31, 2020.  All figures are in CAD dollars unless otherwise stated.

Recent Highlights

  • First quarter revenue increased 42% over last year to $241.5 million
  • Gross profit increased 47% over last year to $54.8 million and margins increased to 22.7% from 21.8% last year
  • Adjusted EBITDA increased to $11.0 million from $8.5 million last year
  • Acquired P.C.D. Solutions, which focuses on solutions in enterprise system architecture, storage and information management, virtualization and cloud, business continuity and disaster recovery
  • Launched a sales and engineering office in Toronto
  • Closed an $8.27 million over-subscribed bought deal financing
  • Achieved VMWare’s Master Services Competency for network virtualization
  • Appointed Carl Smith as Chief Financial Officer
  • Introduced Cisco Virtual Care technology solution
  • Awarded the 2020 IBM Business Unit Excellence Award
  • Named Red Hat Rising Star Partner of the Year by Red Hat Inc.
  • Announced a preferred partnership with Trek10, expanding AWS services and expertise for Converge Customers

“First, let me acknowledge the incredible job our management team and employees have done, in partnership with our customers and suppliers, having delivered yet another quarter of significant revenue growth and increases in both gross profit and adjusted EBITDA during extremely difficult circumstances due to COVID-19,” commented Shaun Maine, Chief Executive Officer of Converge Technology Solutions. “The move to remote working has driven more digital transformation in our customer base and resulted in a significant increase in recurring revenues related to cloud and software services and solutions.  This new normal that we are all facing demonstrates how hybrid IT Service Providers are better able to serve the needs of our customers as organizations and governments continue their transition to cloud-based solutions.”

Mr. Maine continued, “As a result of our acquisition strategy over the past several years, we have built a national footprint throughout Canada and the US that allows us the flexibility to meet the needs of our customers with industry-leading solutions. Our partnerships with our vendors such as IBM/RedHat, Cisco and VMware puts Converge at the forefront of change for our customers. In the early parts of 2020, we have been publicly recognized by these organizations including winning the Red Hat Rising Star of the Year award and the IBM Excellence Award for our Analytics practice area.”

Mr. Maine added, “We also continue to focus on establishing our own proprietary technology, particularly within Becker-Carroll. I am incredibly pleased to announce the launch of our Converge TrustBuilder platform, designed to enable public entities to offer their products and services online in a secure and transparent way. We are looking forward to sharing more details about this exciting initiative in the weeks ahead”

 

First 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, May 14th, 2020
Time: 8:30 AM Eastern Time

Participant Dial-in Numbers:
Local – Toronto (+1) 416 764 8609
Toll Free – North America (+1) 888 390 0605
Germany – 08007240293
United Kingdom – 08006522435
Conference ID: 60564007

Recording Playback Numbers:
Toronto (+1) 416 764 8677
Toll Free – North America (+1) 888 390 0541
Passcode: 564007
Expiry Date: Thursday, May 21st, 2020 at 11:59pm

 

Summary of Consolidated Financial Results

(in thousands of dollars)

For the three months ended March 31,       2020          2019
Revenues $ 241,525 $ 170,601
Cost of sales 186,690 133,394
Gross profit 54,835 37,207
Selling, general and administrative expenses 46,741 29,646
Income before the following: 8,094 7,561
Depreciation and amortization 5,401 2,608
Finance expense, net 5,499 3,381
Transaction costs 402 3,178
Other expense (income) (1,619) 234
Net loss before taxes $ (1,589) $ (1,840)
 

Income tax (recovery) expense

(173) 1,055
 

Net income (loss)

(1,416) (2,895)
Exchange (loss) gain on translation of foreign operations 1,699 33
Comprehensive income (loss) $ (3,115) $ (2,928)
Adjusted EBITDA $ 11,044 $ 8,453

 

Adjusted EBITDA (Non-IFRS Financial Measurement)

Adjusted EBITDA represents net loss or income adjusted to exclude amortization, depreciation, interest expense and finance costs, foreign exchange gains and losses, income tax expense, and special charges related to acquisition and restructuring costs. The Company uses Adjusted EBITDA to provide investors with a supplemental measure of its operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. The Company believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess the ability to meet capital expenditure and working capital requirements.

Adjusted EBITDA is not a recognized, defined or standardized measure under IFRS. The Company’s definition of Adjusted EBITDA will likely differ from that used by other companies and therefore comparability may be limited.  Adjusted EBITDA should not be considered a substitute for or in isolation from measures prepared in accordance with IFRS.  Investors are encouraged to review the Company’s financial statements and disclosures in their entirety and are cautioned not to put undue reliance on non-IFRS measures and view them in conjunction with the most comparable IFRS financial measures. The Company has reconciled Adjusted EBITDA to the most comparable IFRS financial measure as follows:

For the three months ended March 31,
             2020                  2019
Net loss before taxes  $         (1,589)  $             (1,840)
Finance expense               5,499                   3,381
Depreciation and amortization               5,401                    2,608
Depreciation included in cost of sales               1,434                     906
Foreign exchange loss (gain)             (1,640)                     220
Special charges               1,939                    3,178
Adjusted EBITDA  $         11,044  $                8,453

 

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 regional 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:

Carl Smith                                                                                            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

 

  1. 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 filings statement available on SEDAR under the Company’s profile at www.sedar.com including its most recent Annual Information Form, its Management Discussion and Analysis and its Annual and Quarterly Financial 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.

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 Announces Date for First Quarter 2020 Financial Results Conference Call

FOR IMMEDIATE RELEASE

May 8th, 2020 – 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 first quarter for the period ended March 31st, 2020 on Wednesday, May 13th, 2020 after market close. The Company will subsequently hold a conference call on Thursday, May 14th, 2020 at 8:30am EST hosted by Shaun Maine, Chief Executive Officer and Carl Smith, Chief Financial Officer. A question and answer session will follow the corporate update.
 

Conference Call Details:

Date: Thursday, May 14th, 2020
Time: 8:30 AM Eastern Time
 
Participant Dial-in Numbers:
Local – Toronto (+1) 416 764 8609
Toll Free – North America (+1) 888 390 0605
Germany – 08007240293
United Kingdom – 08006522435
Conference ID: 60564007
 
Recording Playback Numbers:
Toronto (+1) 416 764 8677
Toll Free – North America (+1) 888 390 0541
Passcode: 564007
Expiry Date: Thursday, May 21st, 2020 at 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

Converge Technology Solutions Corp. is a North American 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.

For further information contact:

Converge Technology Solutions Corp.
Email:  investors@convergetp.com
Phone:  416-360-1495

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Converge Technology Solutions Corp. Wins 2020 IBM Business Unit Excellence Award

Converge secures 2020 IBM Business Unit Excellence Award for Data & AI: DataOps, advancing their Analytics practice and strengthening IBM partnership.

FOR IMMEDIATE RELEASE

May 7, 2020 – TORONTO, ONTARIO, CANADA – 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 proud to announce it has won the IBM Excellence Award, Data & AI: DataOps – during the first-ever virtual IBM Think conference on May 5, 2020. IBM’s Excellence Awards recognize the stellar performance of IBM Business Partners who have demonstrated excellence and drive exceptional client experiences and business growth.

“We’re honored to be recognized by top executives from IBM’s Analytics brand in receiving this Excellence Award for Data & AI: DataOps,” said David Luftig, VP of Advanced Analytics at Converge. “This award represents the integration of our highly skilled professionals, IBM’s portfolio of solutions, and our continued investment in skills around IBM’s analytics technologies such as business intelligence, data management, data science, and AI.  Most importantly, this award represents our ongoing commitment to solving our clients’ unique business requirements through successful implementations around IBM’s portfolio of solutions. We look forward to our continued partnership with IBM and to jointly strengthening our advanced analytics practice within Converge.”

Converge Technology Solutions Corp. was named one of twenty-two Business Unit Excellence Award winners based on set criteria established by each Business Unit. The IBM Business Unit Excellence Awards recognize IBM Business Partners that deliver stand-out results to help drive business value and transform the way clients and industries operate.


 About Converge

Converge Technology Solutions Corp. is a North American 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.

For further information contact:

Converge Technology Solutions Corp.
Email:  investors@convergetp.com
Phone:  416-360-1495

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Converge Technology Solutions Corp. Forms Preferred Partnership with Trek10

Converge announces a preferred partnership with Trek10. As a result, the organizations will be able to provide better adoption and support services for Amazon Web Services to clients across North America.

FOR IMMEDIATE RELEASE

May 6, 2020 – TORONTO, ONTARIO, CANADA – 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 a strategic bi-lateral partnership with Trek10, a company dedicated to delivering professional and managed services on Amazon Web Services (“AWS”). The partnership between Converge and Trek10 will result in expanded AWS services and expertise for Converge’s clients and access to a greater variety of technology services for Trek10’s clients.

The combined capabilities of Converge and Trek10 address the holistic needs and full lifecycle of clients’ deployments on AWS. Trek10 is a globally-unique Advanced Consulting Partner in the AWS Partner Network (APN) with outstanding expertise in cloud-native and serverless computing. Their user-focused approach of assisting clients with embracing AWS truly accelerates time to value for cloud initiatives. Trek10’s skills span from foundational components with best practices implementation to application modernization and advanced next-generation cloud services. The partnership addresses both the build and operate aspects of clients’ cloud adoption journeys by making Trek10’s next generation CloudOps managed service and Harbor management platform available to Converge clients.

“Partnering with Trek10 will enable us to not only drive cloud strategy and adoption with our clients but also deliver a broader range of AWS services and support,” said Greg Berard, President of Converge. “Together, we will deliver the highest level of customer service by focusing on the needs of our customers and helping them design, implement, and manage deployments on AWS.”

This partnership also enables a new level of excellence with regards to hybrid architecture solutions through deep relationships with AWS and the organizations they collaborate with. Now, the organizations can offer clients Team Support when they decide to explore new AWS services, are ready to move to the next build cycle, or have the desire to engage in a new cloud initiative. By leveraging the strength of Converge’s client relationships and technical capabilities of Trek10, the companies can offer truly scalable, client-focused AWS services.

“Our values and capabilities perfectly align with Converge’s. This is a true partnership that will be beneficial to both organizations’ clients, existing and future. We both understand the value of meeting customers where they are to provide better, more reliable technology, and together we have the ability to accelerate that process for our clients,” said Shane Fimbel, CEO of Trek10.


About Trek10, Inc.
Born in the cloud and 100% focused on AWS infrastructure, Trek10 specializes in leveraging the absolute best tools and AWS services to design, build, and support cloud-native, serverless and event-driven architectures for clients. Trek10 excels at building complete serverless applications for use-cases such as IOT, media management, data-processing pipelines, and more. In addition to building highly optimized solutions on AWS, Trek10 provides proactive monitoring and 24/7 support for AWS deployments via Trek10 CloudOps, a managed service specifically designed for AWS, and a technical response team fully-staffed by AWS certified engineers. For additional information, please visit Trek10’s website at trek10.com.

About Converge
Converge Technology Solutions Corp. is a North American 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.

For more information contact:
Converge Technology Solutions Corp.

Email: investors@convergetp.com

Phone: (416) 360-1495

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Converge Technology Solutions Corp.Converge Technology Solutions Corp. Forms Preferred Partnership with Trek10
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Converge Technology Solutions Corp. Wins Red Hat North American Partner Award

Converge named Rising Star Partner of the Year, Recognized for Outstanding Channel Contributions for Open Source Software

 

 FOR IMMEDIATE RELEASE

 

April 27, 2020 – TORONTO, ONTARIO, CANADA – 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 proud to announce it has been named Rising Star Partner of the Year by Red Hat, Inc., the world’s leading provider of open source solutions. This award is part of the annual Red Hat North American Partner Awards, which aim to honor partners for continued efforts to support customers on the path to IT modernization.

Converge was honored for its dedication to providing innovative open source solutions to customers in the commercial sector. Specifically, Converge was recognized for demonstrating collaboration and investment within its Red Hat partnership to achieve success in the efforts to bring Red Hat technologies and services to customers.

“Our clients are placing an emphasis on technologies like containers and automation as they adopt hybrid, multicloud strategies, and we see Red Hat and open source solutions as a key enabler to those strategies,” said Greg Berard, President of Converge. “We are honored to be recognized by Red Hat as a Rising Star Partner of the Year and look forward to our continued collaboration.”

Red Hat’s 2019 North American Partner Awards honor both commercial and public sector partners for their dedication to successfully delivering innovative open source solutions to customers. Honorees were recognized for outstanding performance in 2019 across several categories that span Red Hat’s open source portfolio and their dedication to delivering customer success.

“Converge is a valued channel partner to Red Hat, and we are pleased to honor them with this well-deserved award,” said Ernest Jones, Vice President, North American Partner Sales, Red Hat. “We look forward to our continued relationship with Converge and helping them provide the best in open source solutions to their clients.”


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:

Converge Technology Solutions Corp.
Email:  investors@convergetp.com
Phone:  416-360-1495

###

Red Hat is a trademark of Red Hat, Inc. registered in the U.S. and other countries.

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Converge Technology Solutions Reports Fourth Quarter and Fiscal Year 2019 Financial Results

FOR IMMEDIATE RELEASE

April 1, 2020 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 twelve month period ended December 31, 2019.  All figures are in CAD dollars unless otherwise stated.

“We are very pleased with our results from the last fiscal year, as we grew gross profit by 80% and Adjusted EBITDA by 92%” stated Shaun Maine, Chief Executive Officer of Converge Technology Solutions. “In addition to our strong financial performance, in 2019 we acquired 5 companies and achieved our goal of having a national footprint of regionally focused IT Service Providers supported nationally by our 6 Converge-branded practice areas:  Cybersecurity, Analytics, Cloud, Digital Infrastructure, Digital Transformation and Talent.  We are now well positioned as we focus on generating additional operating leverage and efficiencies, working towards further increasing our Adjusted EBITDA margin in 2020.”

“As a result of the outbreak of COVID-19 resulting in government mandates like social distancing and requiring non-essential business to temporarily close or curtail their operations, we have experienced increased demand for solutions that allow employees to work remotely” said Mr. Maine.  “To date, all of our companies have been operational and we have been able to fulfil this demand even at time when demand is increasing and supply chains are under pressure.  In the states and provinces that have enacted laws to limit business operations, we have been considered an essential service due to our ability to help governments and companies support and enable remote workers.  We believe that as a result of the COVID-19 virus, a trend for companies to increase the use of cloud and hybrid cloud computing and remote access will likely gain additional traction in the foreseeable future.  We also believe our national footprint and partnerships with several of the leading hardware and software companies, positions us well to support this trend.  We are committed to supporting our customers to the extent possible through these challenging times and helping them prepare for the future.”

 

Fourth Quarter 2019 Financial Highlights

  • Revenue for the three months ended December 31, 2019 was $214.7 million compared to $136.1 million for the same period in 2018, an increase of 58%. Revenue for the twelve months ended December 31, 2019 was $687.8 million compared to $459.2 million for the same period in 2018, an increase of 50%.

  • Gross profit for the three months ended December 31, 2019 was $53.4 million or 24.9% compared to $30.3 million or 22.3% for the same period in 2018, an increase of 76%.  Gross profit for the twelve months ended December 31, 2019 was $161.6 million or 23.5% compared to $90.0 million or 19.6% for the same period in 2018, an increase of 80%.

  • Adjusted EBITDA1 for the three months ended December 31, 2019 was $11.8 million or 5.6% compared to Adjusted EBITDA of $5.8 million or 4.2% for the same period in 2018, an increase of 105%. Adjusted EBITDA1 for the twelve-month period ended December 31, 2019 totaled $31.6 million or 4.6% compared to $16.5 million or 3.6% for the same period in 2018, an increase of 92%.

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 Fourth Quarter

  • Converge acquired Datatrend Technologies Inc., a leading technology solutions provider located in the Minneapolis/St. Paul region.
  • Converge acquired Essex Technology, a Wall Street-based cloud, cognitive, and cybersecurity provider in the Northeast US.
  • Converge acquired VSS Holdings, a Northeast-based partner focused on managed services, technology solutions, IT portfolio management and consulting services.

Key Items Subsequent to Quarter End

  • Converge acquired Datatrend Technologies Inc., a leading technology solutions provider located in the Minneapolis/St. Paul region.
  • Converge acquired Essex Technology, a Wall Street-based cloud, cognitive, and cybersecurity provider in the Northeast US.
  • Converge acquired VSS Holdings, a Northeast-based partner focused on managed services, technology solutions, IT portfolio management and consulting services.

COVID-19

  • Since December 31, 2019, the outbreak of the novel strain of coronavirus, specifically identified as “COVID-19”, has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods and social distancing, have caused material disruption to businesses globally resulting in an economic slowdown. Global equity markets have experienced significant volatility and weakness. Governments and central banks have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions. The extent to which COVID-19 and any other pandemic or public health crisis impacts the Company’s business, affairs, operations, financial condition, liquidity, availability of credit and results of operations will depend on future developments that are highly uncertain and cannot be predicted with any meaningful precision, including new information which may emerge concerning the severity of the COVID-19 virus and the actions required to contain the COVID-19 virus or remedy its impact, among others. The duration and impact of the COVID-19 outbreak is unknown at this time, as is the efficacy of the government and central bank interventions. It is not possible to reliably estimate the length and severity of these developments and the impact on the financial results and condition of the Company and its operating subsidiaries in future periods.

Fourth 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.

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.

Conference Call Details:

Date: Thursday, April 2nd, 2020
Time: 8:30 AM Eastern Time

Participant Dial-in Numbers:
Local – Toronto (+1) 416 764 8609
Toll Free – North America (+1) 888 390 0605
Conference ID: 31436623

Recording Playback Numbers:
Toronto (+1) 416 764 8677
Toll Free – North America (+1) 888 390 0541
Passcode: 436623
Expiry Date: Thursday, April 9th, 2020 at 11:59pm

 

Summary of Consolidated Financial Results

(in thousands of dollars)

 

For the three months

ended December 31,

 

For the twelve months

ended December 31,

 

2019

2018

2019

2018

 

Revenues

$

214,705

$

136,088

$

687,796

$

459,193

 

Cost of sales

 

161,350

 

105,765

 

526,211

 

369,224

 

Gross profit

 

53,355

 

30,323

 

161,585

 

89,969

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

44,172

 

25,149

 

136,949

 

75,655

 

Income before the following:

 

9,183

 

5,174

 

24,636

 

14,314

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

4,648

 

1,850

 

13,057

 

5,100

 

Finance expense, net

 

5,499

 

2,551

 

16,026

 

7,549

 

Change in fair value of contingent consideration

 

(841)

 

(186)

 

1,299

 

7,447

 

Transaction costs – acquisitions, including retention bonuses

 

1,945

 

3,063

 

6,292

 

7,748

 

Initial public offering costs

 

 

1,622

 

 

2,282

 

Other expense

 

(200)

 

(323)

 

719

 

(224)

 

Net loss before taxes

$

(1,868)

$

(3,403)

$

(12,757)

$

(15,588)

 

 

Income tax (recovery) expense

 

(3,641)

 

794

 

(1,917)

 

2,648

 

 

Net income (loss)

 

1,593

 

(4,197)

 

(10,840)

 

(18,236)

 

Exchange (loss) gain on translation of foreign operations

 

(741)

 

469

 

(784)

 

691

 

Comprehensive income (loss)

$

2,334

$

(4,666)

$

(10,056)

$

(18,927)

 

 

EBITDA1

 

$

 

7,961

 

$

 

1,583

 

$

 

19,496

 

$

 

(744)

 

Adjusted EBITDA1

$

11,832

$

5,759

$

31,622

$

16,509

 

 

 

 

 

 

 

 

 

 

 

 

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:

Carl Smith                                                                                            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 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 Amended Annual Information Form for the year ended December 31, 2018 dated as of July 8, 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 2019 and 2018  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. Introduces Cisco Virtual Care Technology Solution

Converge is Dedicated to Assisting Customers Through COVID-19 Challenges

FOR IMMEDIATE RELEASE

March 24, 2020 – TORONTO, ONTARIO, CANADA – Converge Technology Solutions Corp. (“Converge” or “the Company”) (TSXV:CTS)  (FSE:0ZB) (OTCQX:CTSDF) is pleased to announce the addition of a new solution, Virtual Care Technology (“VCT”), which aims to assist healthcare providers to deliver the appropriate treatment to patients, as well as enabling remote workers across key industries amid the global pandemic COVID-19. VCT technologies offer agile and adaptable solutions in such pressing times given the current global and economic environment, the challenges it presents to key industries and the movement towards work from home policies.

Ensuring accessible healthcare and contributing towards general community safety and well-being are currently of the utmost importance on a global scale. In response, Converge has introduced its Cisco VCT solution which enables 24-hour communications to help monitor non-hospitalized patients in order to limit capacity constraints within hospitals, and maintain safe communications between patients, doctors, and healthcare providers. Similarly, VCT can be utilized for other crucial customers in need of voice, video and collaboration technologies as the demand for remote work solutions reaches an all-time high.

“In these unprecedented times, Converge is committed to keeping essential industries open and working effectively through support for remote workers and solutions, with a particular focus on assisting healthcare providers to limit the exposure of front-line workers via remote care solutions,” said Shaun Maine, Chief Executive Officer of Converge. “Over the past several years, Converge has worked to develop a strong national footprint with dedicated employees who our customers can count on during this pandemic and into the future.”

“As a proven industry leader, Converge is well-positioned to deliver digital services that meet varying community requirements,” said Victor Martino, Vice President of Solutions Architecture and Engineering at Converge. “Our team, with decades of experience in healthcare IT, together with our collaboration architects can help determine the specific Cisco collaboration cloud solutions and end points that will work with organizations in any clinical setting.”

VCT is ideal for managing outbreaks as it increases overall access to healthcare. Hospital systems, community health services, first responders, and nursing homes can use VCT’s two-way audio/video collaboration and mobile solutions to:

  • Perform regular check-ins with patients remotely;
  • Provide prompt evaluations of new patients to ensure the best possible outcomes;
  • Allow safe access care without the risk of infection;
  • Continuously monitor patients;
  • Respond quickly to urgent situations;
  • Increase collaboration among facilities, clinicians, and first responders;
  • Provide a home health option as hospitals won’t be able to charge a differential for a private room where isolation is medically necessary;
  • Provide an added layer of safety and peace of mind.

“Healthcare organizations are working relentlessly to take care of patients and staff during this pandemic,” said Greg Berard, President of Converge. “Through our strong partnership with Cisco, Converge can offer game-changing communication platforms to ensure that responsible connectivity is not a concern as they continue to work to keep us all safe. Furthermore, as work from home policies continue to develop across multiple industries, our extensive vendor relationships and access to innovative technologies allow us to assist companies as they prioritize the safety and well-being of their employees while seeking minimal disruptions to business activities.”


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:

Carl Smith                                                                                              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

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Converge Technology Solutions Corp.Converge Technology Solutions Corp. Introduces Cisco Virtual Care Technology Solution