by Joe Panettieri • Nov 23, 2022
Converge Technology Solutions has received “expressions of interest” and is exploring a potential company sale, the IT consulting firm and MSP disclosed.
Shaun Maine, CEO, Converge Technology Solutions
Converge Technology Solutions has a market value of $577 million as of November 23, 2022. The company’s stock ($CTSDF) jumped nearly 9% on the news, but shares are still down nearly 70% over the past year, according to SeekingAlpha.
Amid the M&A speculation, Converge Technology Solutions said:
Converge Technology Solutions formed the exploratory committee “in response to expressions of interest that have been received by the company,” the company said. Still, there’s no guarantee that any type of M&A deal will surface, CTS added.
CEO Shaun Maine said CTS’s management team is “fully aligned” with the decision to explore strategic options.
Converge Technology Solutions has been growing organically and through frequent acquisitions. For it third quarter of 2022, CTS said:
We don’t know how much of that revenue growth was organic vs. M&A-related. The IT consulting firm has acquired 35 businesses since October 2017. Recent deals include buying Stone Group and Newcomp Analytics.
Converge Technology Solutions is a CRN Solution Provider 500, Fast Growth 150 and Tech Elite 250 member. The company was Cisco’s Multiple Region Partner of the Year for 2022. Indeed, CTS booked Cisco-related business in 43 of 50 U.S. states, and also booked more than $1 million in 31 sales regions.
Converge Technology Solutions offers such IT services as advanced analytics, application modernization, cloud platforms, cybersecurity, digital infrastructure, and digital workplace offerings.
Multiple midsize and enterprise-class MSPs and IT consulting firms have been exploring potential exits/company sales in recent quarters.
Among those rumored to be exploring potential exits, recapitalizations or other types of moves: Various Atos business units, DXC, Presidio and Rackspace.
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Converge Technology Solutions (CTS) Explores Potential Company Sale – ChannelE2E
