Converge takeover clears final court hurdle—$500M H.I.G. Capital deal to close April 22

Converge Technology Solutions Corp. has received final court approval for its previously announced acquisition by an affiliate of H.I.G. Capital, clearing the last major procedural barrier before the transaction’s expected close. The Ontario Superior Court of Justice (Commercial List) granted its final order on April 16, authorizing the plan of arrangement under which 16728421 Canada Inc., an H.I.G. affiliate, will acquire all issued and outstanding shares of Converge, excluding those held by shareholders who have entered into rollover equity agreements.

The $500 million deal, which values Converge at approximately C$7.65 per share, is expected to close on or about April 22, 2025, pending the final satisfaction or waiver of remaining conditions outlined in the amended arrangement agreement signed in February and revised on April 1. Converge also confirmed that all regulatory approvals required to proceed with the transaction have now been secured.

The court’s decision marks the latest milestone in a transaction first disclosed in early February 2025, when Converge announced it had agreed to be taken private by H.I.G. Capital through a wholly owned acquisition vehicle. The deal received shareholder approval in March and regulatory clearance in early April.

What does the Converge-H.I.G. Capital deal mean for investors and IT clients?

As part of the go-private strategy, the acquisition is expected to streamline Converge’s growth trajectory in a highly competitive IT services landscape. Converge Technology Solutions has positioned itself as a services-led, software-enabled IT and cloud provider since its founding in 2017. The company has rapidly expanded through a series of acquisitions and integrations, focusing on advanced analytics, artificial intelligence, cybersecurity, cloud computing, and enterprise digital transformation.

With backing from H.I.G. Capital, which manages over $60 billion in assets, Converge aims to continue this expansion while benefiting from operational flexibility and longer-term investment horizons. Market analysts view the privatization as a move that could relieve pressure from short-term public market expectations while allowing H.I.G. to unlock value through deeper integrations and global expansion.

What happens next for shareholders and stakeholders?

The arrangement will result in all common shares of Converge, except those rolled over into the new structure, being acquired for cash. Shareholders with questions about submitting their shares have been directed to Computershare Investor Services Inc., the designated depositary for the deal. The company has provided contact numbers and email support to help facilitate the process ahead of the expected April 22 transaction date.

Converge has made clear that its client delivery model—centered around its proprietary AIM (Advise, Implement, Manage) methodology—will remain intact post-acquisition. The methodology has been a core part of the company’s value proposition, enabling scalable, customized solutions across industries.

Investor sentiment and market context

Converge Technology Solutions Corp. (TSX: CTS) shares have experienced volatility over the past year amid a broader downturn in technology stocks, exacerbated by macroeconomic pressures and rising interest rates. However, the proposed buyout at C$7.65 per share represented a 25% premium over the stock’s trading price prior to the announcement, drawing attention from institutional investors and analysts who saw the deal as a near-term liquidity event.

Recent trading has seen Converge shares hover just below the offer price, reflecting market confidence in the deal’s completion. Sentiment toward the acquisition remains positive, with analysts noting the combination of final court approval and completed regulatory clearances as de-risking elements.

In terms of longer-term positioning, H.I.G.’s acquisition aligns with growing private equity interest in digital infrastructure and IT services providers. As enterprises continue transitioning to cloud-first and AI-integrated environments, firms like Converge are seen as attractive targets due to their hybrid capabilities and ability to deliver enterprise-grade digital solutions at scale.

Digital transformation momentum likely to continue under private ownership

The deal signals continuity in Converge’s strategic roadmap with added financial muscle and operational support from H.I.G. Capital. While public investors will exit the picture following completion, customers, partners, and employees are expected to see minimal disruption in day-to-day operations.

H.I.G. has not publicly outlined any immediate restructuring plans, and the emphasis appears to be on sustaining growth, enhancing solution delivery, and possibly exploring new markets or verticals. In line with trends observed in similar private equity-backed tech buyouts, Converge may also pursue tuck-in acquisitions that strengthen its platform or address capability gaps.

While the move to private ownership removes public market transparency, the long-term prospects for Converge as a private entity are broadly seen as positive, especially given the tailwinds in AI integration, cybersecurity needs, and enterprise cloud migration.