Converge Technology Solutions acquires Technology Integration Group

Converge Technology Solutions (TSX: CTS) has closed the acquisition of PC Specialists Technology Integration Group (TIG), after initially signing the deal in May this year.

San Diego-based TIG is a full-service IT provider and has 20 offices spread across North America, which provide optimised performance solutions and critical business support.

The company’s services include software and hardware procurement, discovery assessments, strategic planning, deployment, data centre optimisation, IT asset management and cloud computing.

TIG also offers custom-built IT solutions for its clients around the globe.

The acquisition of TIG marks Converge’s 31st purchase since October 2017 – adding to the group’s portfolio of growing companies, with brands such as Accudata Systems acquired 12 February 2021 and BlueChipTek in 21 May 2018, along with numerous other companies.

Founded in 2017, Converge is a software-enabled IT and cloud solutions provider of advanced analytics, cybersecurity, and digital infrastructure services, among others, across public and private sectors globally

Converge wins €156m (C$204m) IT Contract

While completing its acquisition of TIG, Converge also revealed its subsidiary REDNET GmbH has managed to secure a large public sector contract in Germany.

The Germany-based company, with headquarters in Mainz, focuses on serving clients IT solutions within the nation’s public sector.

The contract, worth €156 million (C$204 million), will allow public authorities, local authorities and universities in Rhineland-Palatinate and Saarland to obtain computer hardware through REDNET.

Public authorities, local authorities and universities will be equipped with thin clients, notebooks, servers, laser printers, inkjet printers, Windows tablets, iOS tablets and scanners until May 2025.

In Rhineland-Palatinate, REDNET’s services are used by Landtag, ministries, municipalities, police and judiciary, as well as universities and companies that are private.

As for Saarland, ministries, the Landtag, state companies, and universities can receive their IT via REDNET.

REDNET GmbH chief executive officer Barbara Weitzel said the company is “thrilled” by the opportunity.

“We are thrilled that we were once again able to convince with our know-how, our 360° service portfolio and the good partnership with the manufacturers and that we can successfully continue our cooperation, which has been uninterrupted since 2004,” she said.

C$500m loan to fund global expansion

In late July, Converge secured a C$500 million credit facility to fulfil its set-out acquisition strategy throughout North America and Europe.

The five-year C$500 million global revolving credit facility includes an uncommitted accordion feature, allowing Converge to extend the borrowing capacity up to $600 million.

Converge says the added funds will underpin its ongoing global expansion.