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Converge Technology Solutions Corp
(TSX:CTS)
Converge Technology Solutions Corp (CTS) vs. S&P 500 (SPY)
Converge Technology Solutions Corp Business Overview & Revenue Model
Converge Technology Solutions Corp Financial Statement Overview
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.71B | 2.16B | 1.53B | 948.80M | 687.80M | Gross Profit |
| 591.43M | 550.77M | 345.70M | 233.01M | 161.59M | EBIT |
| 46.62M | 70.99M | 48.11M | 24.41M | 17.87M | EBITDA |
| 142.64M | 118.71M | 71.36M | 43.75M | 21.16M | Net Income Common Stockholders |
| -1.45M | 27.28M | 16.37M | -4.17M | -10.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 169.87M | 159.89M | 248.19M | 64.77M | 20.59M | Total Assets |
| 2.15B | 2.25B | 1.37B | 720.62M | 488.88M | Total Debt |
| 433.29M | 421.73M | 1.23M | 139.16M | 165.44M | Net Debt |
| 262.87M | 261.84M | -246.97M | 74.40M | 144.85M | Total Liabilities |
| 1.54B | 1.62B | 720.01M | 618.87M | 498.76M | Stockholders Equity |
| 586.20M | 599.91M | 613.49M | 101.75M | -9.88M |
| Cash Flow | Free Cash Flow | |||
| 218.71M | 17.64M | 80.75M | 46.61M | 25.01M | Operating Cash Flow |
| 229.54M | 41.59M | 87.06M | 51.60M | 26.81M | Investing Cash Flow |
| -103.93M | -463.43M | -277.80M | -66.59M | -66.77M | Financing Cash Flow |
| -113.84M | 336.31M | 371.38M | 58.54M | 52.41M |
Converge Technology Solutions Corp Technical Analysis
Converge Technology Solutions Corp Peers Comparison
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$660.32M | 26.74 | 33.92% | 2.50% | 32.49% | -0.20% | |
74 Outperform | $1.42B | 16.48 | 14.76% | 4.13% | 8.11% | 15.83% | |
74 Outperform | $9.53B | 10.89 | 15.87% | 3.81% | -8.74% | 307.82% | |
71 Outperform | $1.13B | ― | -37.61% | 0.92% | -4.18% | -13856.25% | |
71 Outperform | C$5.28B | 157.81 | 2.32% | ― | 15.14% | -31.45% | |
71 Outperform | C$105.27B | 105.69 | 30.90% | 0.11% | 21.56% | 31.90% | |
60 Neutral | $10.96B | 10.28 | -6.73% | 2.97% | 7.74% | -12.45% |
Converge Technology Solutions Corp Earnings Call Summary
Converge Technology Solutions Corp Corporate Events
H.I.G. Capital has completed its acquisition of Converge Technology Solutions, merging it with Mainline Information Systems to create Pellera Technologies. This new entity, with a revenue of approximately $4 billion in 2024, is set to enhance its market position by offering comprehensive IT solutions in key growth areas. With a seasoned leadership team, Pellera is poised to capitalize on emerging technology trends, providing clients with advanced solutions and fostering growth opportunities for employees.
Spark’s Take on TSE:CTS Stock
According to Spark, TipRanks’ AI Analyst, TSE:CTS is a Neutral.
Converge Technology Solutions Corp has a balanced outlook with notable strengths in cash flow and technical momentum, but faces challenges in profitability and valuation. The strategic acquisition by H.I.G. Capital offers substantial upside, enhancing the company’s market positioning and providing new opportunities. However, high leverage and the overbought technical indicators warrant caution.
To see Spark’s full report on TSE:CTS stock, click here.
Converge Technology Solutions Corp. has received final court approval for its acquisition by H.I.G. Capital, with the transaction expected to close by April 22, 2025. This acquisition, which has obtained all necessary regulatory approvals, marks a significant step in Converge’s strategic growth, potentially enhancing its market positioning and providing new opportunities for stakeholders.
Spark’s Take on TSE:CTS Stock
According to Spark, TipRanks’ AI Analyst, TSE:CTS is a Outperform.
Converge Technology Solutions Corp’s overall score is driven by the positive impact of the H.I.G. Capital acquisition, which offers strategic growth potential. Despite strong technical momentum, the company’s financial performance is hindered by negative profitability and high leverage. Valuation concerns persist due to negative earnings metrics, but the acquisition event provides a notable upside.
To see Spark’s full report on TSE:CTS stock, click here.
Converge Technology Solutions Corp. announced that its shareholders have approved the acquisition by H.I.G. Capital, with a significant majority voting in favor of the arrangement. The acquisition, which involves a cash consideration of C$6.00 per common share, is expected to enhance Converge’s market positioning and operational capabilities, with the final court approval anticipated shortly.
Spark’s Take on TSE:CTS Stock
According to Spark, TipRanks’ AI Analyst, TSE:CTS is a Outperform.
Converge Technology Solutions exhibits strong technical momentum and benefits from a strategic acquisition, which bolsters its market positioning. Despite these positives, the company’s financial performance reflects significant challenges, including negative profitability and a high debt load, which weigh down the overall score. The valuation remains a concern due to negative P/E metrics, but the acquisition event provides a substantial upside potential.
To see Spark’s full report on TSE:CTS stock, click here.
Converge Technology Solutions Corp. has announced a special meeting for shareholders to vote on a resolution regarding a statutory plan of arrangement with H.I.G. Capital, which involves H.I.G. acquiring all issued and outstanding common shares of the company for C$6.00 per share. The board of directors recommends shareholders vote in favor of the resolution, which could significantly impact the company’s ownership structure and market positioning.
Converge Technology Solutions Corp has amended its arrangement agreement with H.I.G. Capital, increasing the cash offer for its common shares to C$6.00 per share. This decision follows an unsolicited proposal from a third party offering a slightly higher price, but the board chose the amended agreement with H.I.G. due to the certainty and benefits it provides to stakeholders, including the discontinuation of legal proceedings and third-party discussions.
Converge Technology Solutions Corp. announced that two independent proxy advisory firms, including Institutional Shareholder Services Inc., have recommended shareholders vote in favor of the proposed acquisition by an affiliate of H.I.G. Capital. The acquisition involves a cash offer of C$5.50 per share, representing a premium to the unaffected price. The board of directors and a special committee of Converge have also unanimously recommended the approval of this arrangement, which could significantly impact the company’s operations and market positioning.
Converge Technology Solutions Corp. has announced the filing and mailing of its management information circular for a special shareholder meeting to approve its acquisition by H.I.G. Capital. The company has received an interim court order and the expiration of the HSR Act waiting period, clearing significant hurdles for the acquisition. The proposed arrangement will see H.I.G. Capital acquire all outstanding shares for C$5.50 per share, valuing Converge at approximately C$1.3 billion. Shareholders will vote on the arrangement on April 10, 2025, in a virtual meeting.
Converge Technology Solutions Corp. reported its financial results for the fourth quarter and fiscal year 2024, highlighting a modest increase in gross sales and revenue despite a decrease in gross profit and adjusted EBITDA. The company faced a significant net loss primarily due to a non-cash impairment charge in its Germany segment. Despite these challenges, Converge successfully reduced its net debt and increased capital returns to shareholders, indicating a focus on financial stability and shareholder value.
Converge Technology Solutions Corp. announced preliminary financial results for Q4 and fiscal year 2024, indicating a mixed performance. While there was a year-over-year increase in gross sales and adjusted EBITDA for the fourth quarter, the company faced a significant loss before income taxes due to impairment charges related to its investments, notably in Portage CyberTech Inc. and its German segment.
Converge Technology Solutions Corp. has entered into an agreement to be acquired by H.I.G. Capital in an all-cash transaction valuing the company at approximately C$1.3 billion. This move will see Converge delist from public markets and integrate with H.I.G.’s Mainline Information Systems, enhancing their combined capabilities in IT solutions. The acquisition, supported by 24% of Converge’s shareholders, offers significant premiums on shares and positions the company for strategic growth under a unified management team.