Converge Technology Solutions acquires three North American software companies

IT stock

Toronto-based Converge Technology Solutions has acquired three software companies over the last two weeks. The newly-acquired companies include Vicom Computer Services, Vivvo Application Studios, and CarpeDatum.

With these latest three deals, Converge has now acquired 17 companies to date.

Converge aims to build a national platform of regionally focused IT infrastructure firms in the United States and Canada. The company provides cloud platforms and services, blockchain technologies, resiliency solutions, and managed services, as well as access to business accelerators.

Though headquartered in Toronto, Converge has offices across Canada, the US, and the United Kingdom. With these deals, Converge has now acquired 17 companies to date. The three latest deals come shortly after Converge’s acquisition of Workgroup Connections for $1.4 million CAD.

On December 21, Converge announced it had entered into a definitive agreement to acquire CarpeDatum, a Denver, Colorado-based IBM analytics consulting firm. Founded in 1997, CarpeDatum builds analytics solutions for customers across a variety of industries.

The purchase price of the deal totalled $6.38 million CAD ($5 million USD). The transaction is expected to consist of $1.25 million USD in cash at closing and up to $2.5 million USD for the three years following closing based on the achievement of certain milestones. Converge will also issue the right to sellers to exchange their retained membership interests in CarpeDatum for an aggregate value of $1.25 million USD of Converge shares.

Converge said the addition of CarpeDatum to its analytics practice will give Converge new capabilities regarding artificial intelligence, analytics, and performance management.

In a statement issued December 21, Converge said the deal with CarpeDatum was expected to close Monday, however, the closing of the deal has yet to be announced.

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One day after announcing its intention to acquire CarpeDatum, Converge acquired Vivvo Application Studios. Vivvo, based in Regina, offers an identity-management-as-a-service platform. The acquisition of Vivvo is aimed to accelerate the time to market for Converge’s TrustBuilder Platform. TrustBuilder is Converge’s digital identity and privacy solution.

The purchase price of the deal consisted of $2.5 million in cash at closing and 381,262 common shares of Converge. The transaction also included up to $3 million in earn-out payments for the next three years, based on the achievement of certain milestones, including the commercialization of the combination of the Vivvo Trust Platform and the Converge TrustBuilder Platform.

On Monday, Converge Technology completed its acquisition of Vicom Computer Services for $32 million CAD. Vicom, which is based in Farmingdale, New York, according to the company’s LinkedIn page, is a multi-cloud infrastructure provider.

Converge said its acquisition of Vicom, the company’s seventeenth such deal to date, will give the Converge a team of architects and engineers aimed to accelerate the growth of the company’s practice areas.

Image source Unsplash. Photo by Christopher Gower.

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