H.I.G. Capital raises offer for Converge in last-minute twist after rival suitor triggers bidding war

Find out why Converge amended its H.I.G. Capital deal after a rival bidder emerged—read how the C$6.00 offer may shape the company's future.

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has revised its acquisition deal with , lifting the offer price to C$6.00 per share in response to a binding counteroffer from a competing buyer. The development marks a significant shift in a transaction that has drawn legal challenges, shareholder scrutiny, and a brief bidding contest over the future of the IT solutions provider.

Why Converge raised the deal price with H.I.G. Capital

The agreement amends a previously signed arrangement between Converge and H.I.G. Capital, originally valued at C$5.50 per share. After receiving an unsolicited, conditional proposal on March 7 from a third party offering C$6.00 per share, the Converge board of directors was compelled to assess whether the new offer constituted a “superior proposal” under fiduciary obligations.

The board—supported by its financial and legal advisors—deemed the proposal credible enough to warrant formal consideration. That decision would later prompt legal retaliation from H.I.G. Capital, which argued that Converge breached its exclusivity obligations by entering into discussions with the rival bidder. However, Converge denied any wrongdoing and mounted a vigorous defence.

Court battle and rival bid intensify acquisition drama

On March 25, H.I.G. Capital initiated proceedings in the Ontario Superior Court of Justice seeking to block Converge from accepting or negotiating the competing offer. The court issued an order preventing Converge from disclosing the legal claims publicly, further complicating the narrative around the deal. Behind the scenes, however, negotiations escalated.

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Just before the board was due to make its final recommendation, Converge received a formal, binding proposal from the third party offering C$6.00 per share in cash. The rival bidder increased the offer to C$6.10 per share on April 1. Meanwhile, H.I.G. Capital responded by matching the C$6.00 bid, leading to a renegotiated deal with Converge and the abandonment of all legal action.

Converge board prioritises deal certainty over price premium

Despite the slightly higher C$6.10 bid from the third party, Converge’s board opted to amend the agreement with H.I.G. Capital, citing greater deal certainty, a short time to close, and reduced disruption to business operations as key factors. One director abstained from the decision due to a conflict of interest, but the rest of the board unanimously supported the revised agreement.

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As part of the amendment, Converge agreed to terminate all discussions with the third-party suitor and cease litigation with H.I.G. Capital. The C$6.00 cash-per-share offer now forms the basis of the transaction that shareholders will vote on during a special virtual meeting on April 10, 2025. The deal is expected to close around April 17, pending shareholder and regulatory approvals.

Strategic implications of the Converge–H.I.G. Capital transaction

Founded in 2017, Converge Technology Solutions has become a prominent hybrid IT provider through a series of acquisitions and organic growth. It focuses on delivering end-to-end digital transformation services—including cloud architecture, , , and data analytics—using its proprietary AIM (Advise, Implement, Manage) model.

The acquisition allows H.I.G. Capital to deepen its presence in the cloud and managed IT services sector, building on its strategy of acquiring growth-focused technology firms. The bid reflects broader private equity interest in companies offering scalable enterprise cloud platforms and next-generation IT capabilities.

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What this means for investors and the broader M&A landscape

For Converge shareholders, the amended offer represents a 9.1% premium over the original bid. It also eliminates legal ambiguity and enhances closing certainty, key factors that helped sway the board’s recommendation despite the slightly higher rival offer.

The process highlights how unsolicited offers can disrupt even advanced-stage M&A transactions, introducing both opportunity and risk. Legal disputes like the one between H.I.G. and Converge may also serve as cautionary tales for future deals, especially as private equity firms increasingly compete over strategically valuable tech assets.

Industry analysts suggest that while the price increment is modest, the underlying message is more significant: in today’s environment, execution certainty often matters more than top-line pricing—particularly when digital infrastructure firms like Converge are concerned.


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