RE:RE:Acquires Creative Breakthroughs, Inc. Joe Panettieri • Apr 1, 2022
IT solutions provider Converge Technology Solutions has acquired Creative Breakthroughs Inc. (CBI), an MSSP and cybersecurity solutions provider for $US47 million plus $3 million in working capital. A three-year earn-out could add $17 million to the purchase price. The M&A deal’s valuation is a reasonable 5.1X to 6.0X annual EBITDA, based on various earn-out and financial performance targets.
This is technology M&A deal number 322 that MSSP Alert and sister site ChannelE2E have covered so far in 2022.
MSSP Acquired: Revenue and EBITDA Snapshot
CBI’s financial performance for the 12-month period ended January 31, 2022, includes:
- Gross revenue of approximately C$112 million (US$89.6 million); and
- adjusted EBITDA of C$9.1 million (US$7.3 million).