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Converge Technology Solutions Corp T.CTS

Alternate Symbol(s):  CTSDF

Converge Technology Solutions Corp. is a services-led, software-enabled, information technology (IT) and cloud solutions provider. Its global approach delivers advanced analytics, artificial intelligence (AI), application modernization, cloud platforms, cybersecurity, digital infrastructure, and digital workplace offerings to clients across various industries. It supports these solutions with advisory, implementation, and managed services across all IT vendors in the marketplace. Its segments include Converge Hybrid IT Solutions (Converge), and Portage Software-as-a-Solution (SaaS) Solutions. Converge is focused on delivering advanced analytics, application modernization, cloud, cybersecurity, digital infrastructure, digital workplace, and managed services offerings and provision of hardware and software products and solutions to clients across various industries and organizations. SaaS is focused on digital transactions between individuals, businesses, and government organizations.


TSX:CTS - Post by User

Post by retiredcfon Dec 07, 2022 9:41am
286 Views
Post# 35155889

Another Possibility

Another PossibilityWhat do you think is the most likely outcome for Converge? Will someone buy it?

The company has received 'expressions of interest', implying more than one interested party. This implies a takeover, but it comes down to price. With a one-year high of $12+, we are not sure a buyer is going to to be willing to pay up to that level. On the other hand, we doubt the Board will really entertain offers that are below $8ish. Thus it may become a case of how strategic a potential buyer views the company. At 12x and 0.3x sales/earnings now, many buyers 'could' pay up, but they need to justify it, especially with a looming recession. If there is no takeover, a management privatization is another possibility. There is still plenty of private equity money around that would help finance a deal. (5iResearch)

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