Converge Technology Solutions is no longer a standalone public company. H.I.G. Capital announced an agreement to acquire the Canadian IT-services provider on February 7, 2025, and the transaction closed in April 2025. Converge was combined with H.I.G.-owned Mainline Information Systems, creating the privately held Pellera Technologies.
The original announcement was widely described as a roughly US$910 million deal. However, Converge’s official terms called for C$5.50 per share and an enterprise value of approximately C$1.3 billion. The US$910 million figure was the approximate U.S.-dollar equivalent—not a competing offer price.
What happened to Converge Technology Solutions?
H.I.G. Capital acquired Converge Technology Solutions through an all-cash transaction and combined it with Mainline Information Systems, an existing H.I.G. portfolio company. The combined business launched as Pellera Technologies after closing in April 2025.
That means the February 2025 headline describing the Mainline merger as “on the horizon” is now historical. Converge shareholders no longer own shares in a standalone publicly traded Converge, and the current operating company is Pellera.
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The $910 million figure versus C$1.3 billion
The currency distinction is important for investors:
| Measure | Official transaction detail |
|---|---|
| Per-share cash offer | C$5.50 per Converge common share |
| Enterprise value | Approximately C$1.3 billion |
| Approximate U.S.-dollar equivalent | Approximately US$909.6 million, commonly rounded to US$910 million |
| Approximate U.S.-dollar per-share conversion | About US$3.84 |
Converge’s official announcement stated the offer in Canadian dollars. The approximately US$910 million figure reported by CRN was a conversion of the Canadian-dollar enterprise value. Likewise, the approximately US$3.84 figure was a U.S.-dollar conversion of the C$5.50 offer.
These amounts should not be treated as interchangeable. Enterprise value is not the same as the total cash paid to common shareholders: it generally reflects the value of the operating business, including relevant debt, cash and other transaction adjustments. The official release is available through Stockwatch, while the original coverage appears in CRN.
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What Converge brought to the combination
Converge was a Canadian, services-led and software-enabled IT solutions provider. Its capabilities included:
- Cloud platforms
- Cybersecurity
- Digital infrastructure
- Advanced analytics and artificial intelligence
- Application modernization
- Digital workplace transformation
- Advisory, implementation and managed services
The company used an “advise, implement, manage” model. In practical terms, that positioned Converge as more than a hardware reseller: it could advise on technology strategy, deploy systems and continue operating or supporting them for customers.
CRN reported that Converge’s third-quarter 2024 sales were $945 million, down 9% year over year, while profit declined 9% to $158 million. The report did not apply the same detailed currency labeling as the Canadian transaction release, so those figures should be treated as CRN-reported numbers rather than automatically compared with the Canadian-dollar valuation.
Converge said fourth-quarter 2024 gross profit and adjusted EBITDA were expected to reach the high end of previously supplied ranges: $165 million to $178 million for gross profit and $36 million to $47 million for adjusted EBITDA. The transaction materials indicated an implied enterprise-value-to-adjusted-EBITDA multiple of approximately 7.4 times based on the trailing 12 months through September 30, 2024.
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Mainline was based in Tallahassee, Florida, and was already owned by H.I.G. Capital. Its historical strengths included:
- IBM mainframe and enterprise infrastructure
- Hybrid cloud
- Cybersecurity and cyber resilience
- Data and AI consulting
- Networking
- Software and professional services
- Managed services
CRN described Mainline as one of the largest IBM mainframe channel partners, while noting that the company had expanded beyond IBM resale into consulting and adjacent technology practices.
Why H.I.G. combined the companies
H.I.G.’s stated rationale was that the businesses had complementary capabilities and could form a larger end-to-end IT-services provider. Converge supplied breadth across cloud, digital infrastructure, cybersecurity, analytics, workplace transformation and application modernization. Mainline added depth in enterprise infrastructure, IBM environments, hybrid cloud, networking and security.
H.I.G. said the combination would strengthen the resulting company across:
- Core data-center infrastructure
- Networking
- Security
- Hybrid cloud
- Professional and managed services
- OEM and technology-partner relationships
That is a strategic rationale, not proof that the promised benefits were achieved. The announcement and subsequent coverage confirm the combination and rebrand, but do not independently establish integration savings, improved margins, customer-retention rates or realized cross-selling gains.
How the transaction was structured
The acquisition used a statutory court-approved plan of arrangement under the Canada Business Corporations Act. An H.I.G. affiliate agreed to acquire all issued and outstanding Converge common shares for C$5.50 in cash per share, except for shares covered by rollover-equity arrangements.
The company’s board unanimously approved the transaction, with an interested director abstaining. A special committee of independent directors recommended the deal. Shareholder approval required two-thirds of votes cast, along with a simple majority excluding specified interested or rollover shareholders.
Approximately 24% of outstanding shares were covered by voting-support agreements. A C$34.4 million termination fee could apply in certain circumstances. While the transaction was pending, Converge also agreed not to declare its regular quarterly dividend.
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For shareholders who did not roll their holdings into the private entity, the cash offer provided immediate liquidity and price certainty. Converge said the offer represented approximately:
- A 56% premium to the February 6, 2025 closing price
- A 57% premium to the 30-day volume-weighted average price
Some insiders and large shareholders rolled equity into the private company rather than receiving only cash. That arrangement allowed them to retain exposure to the combined business, but it was not the same as the liquidity available to ordinary shareholders who accepted cash.
Converge intended to delist its common shares from public markets and cease being a reporting issuer under Canadian securities laws. The announcement described the intended process; unless a precise final delisting date is verified in the relevant Canadian filing, it is safer to describe the broader result: Converge was taken private and combined into Pellera.
Why private ownership matters
For former public investors, the transaction changed more than the share price. Private-equity ownership can give a company flexibility to invest in acquisitions, integration and new service practices without the same quarterly public-market reporting pressures. It can also support a platform-consolidation strategy in which additional IT-services businesses are added over time.
The trade-off is reduced visibility. Private investors and the public generally have less access to detailed information about financial performance, debt, leverage, executive compensation, customer retention and integration progress. The available transaction coverage does not establish H.I.G.’s post-closing financing structure or leverage, so those details should not be inferred.
What the deal may mean for customers and channel partners
Enterprise customers
A larger combined provider may offer a single relationship across infrastructure, cloud, cybersecurity, applications, data and managed services. Customers evaluating Pellera should nevertheless verify practical details rather than assuming the rebrand answers them.
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- Will existing contracts remain with the same legal entity?
- Are account teams, support contacts or escalation paths changing?
- Will vendor certifications and partner status be preserved?
- Can the customer purchase a focused service, or is a broader bundle expected?
- How will data residency, subcontracting, incident response and compliance obligations be handled?
- Will service-level commitments, renewal terms or pricing change?
The public announcement did not resolve these operational questions.
Technology vendors and channel partners
The combination could create a larger partner footprint, broader OEM coverage and more capacity for complex implementations and managed services. It may also increase channel concentration and create uncertainty around overlapping vendor relationships, certifications, territories and account ownership during integration.
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Pellera’s publicly described security ecosystem has included companies such as CrowdStrike, Arctic Wolf, IBM, Rubrik, Cohesity, Okta, SailPoint, Palo Alto Networks, Fortinet and Microsoft Sentinel. These names indicate technology relationships or portfolio coverage, not universal product recommendations or proof that Pellera is the best provider for every buyer.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What remains unknown
The transaction’s completion and Pellera rebrand are established. Several other questions require separate post-closing evidence:
- Whether integration savings were achieved
- How customer retention changed
- Whether staffing increased, declined or shifted across functions
- Post-closing revenue and profit growth
- The company’s debt and financing structure
- Whether additional acquisitions will follow
- The final legal-entity and securities-reporting details for every former Converge operation
A later SEC filing by Spire Global described Converge as acquired by H.I.G. in a go-private transaction for more than US$1 billion in cash. That is a rounded retrospective description and should not replace the original transaction terms of C$5.50 per share and approximately C$1.3 billion in enterprise value.
What this means for different readers
Investors
The key fact is that Converge’s public-market investment thesis ended with the cash acquisition. Former shareholders should distinguish the cash premium they received from any continuing exposure held through rollover equity.
Enterprise IT buyers
Pellera may be relevant when a buyer wants one provider spanning advisory, implementation and managed services. A specialist or direct OEM engagement may be preferable when the project requires narrower expertise, direct product ownership or clearer scope and pricing.
Employees
The combination could create opportunities in cybersecurity, AI, cloud and managed services. It could also produce overlapping corporate functions, new reporting lines, changes to incentive plans or restructuring. The public announcement did not establish specific headcount reductions or retention outcomes.
Competitors
The transaction created a larger privately backed IT-services platform with broader capabilities and potentially greater capacity for enterprise accounts. Its actual competitive impact depends on integration quality, customer retention and future investment—none of which should be assumed from the transaction alone.
Timeline
- February 7, 2025: H.I.G. announced the proposed acquisition of Converge and planned combination with Mainline.
- Second quarter of 2025: This was the expected closing window stated at announcement.
- April 2025: Later coverage reported that the transaction closed.
- After closing: The combined company launched as Pellera Technologies, with Greg Berard as CEO and Jeff Dobbelaere as president.
Bottom line
Converge’s transaction was both a take-private deal and a private-equity platform combination. The original terms were C$5.50 per share and approximately C$1.3 billion in enterprise value, equivalent to about US$910 million at the exchange rate used in the coverage. The deal closed in April 2025, Converge was combined with Mainline, and the resulting private company became Pellera Technologies.
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