Converge Technology Solutions Corp. Acquires LPA Software Solutions
TORONTO and GATINEAU, Quebec, Oct. 04, 2021 (GLOBE NEWSWIRE) — Converge Technology Solutions Corp. (“Converge” or “the Company”) (TSX:CTS) (FSE:0ZB) (OTCQX:CTSDF) a software-enabled IT & Cloud Solutions provider, is pleased to announce it has acquired business data analytics firm, LPA Software Solutions, LLC (“LPA”).
Headquartered in Rochester, NY with personnel in Upstate New York, Dallas, Houston, Charlotte, Boston, Pittsburgh, and Columbus, LPA provides business analytics solutions and professional services in analytics, data science, artificial intelligence, financial performance management, data governance, data integration, location analytics, and data sets. Designated as one of the full-service IBM Platinum Partners that sells, understands, and implements IBM Business Analytics software, LPA proudly supports hundreds of clients and numerous successful implementations across ten major industries.
“LPA Software Solutions looks forward to joining the Converge family of companies to expand the capabilities, skills, and products we will be able bring to our existing and new clients” stated Scott Hopkins, President and CEO of LPA Software Solutions. “The extensive reach and experience of Converge combined with LPA Software Solutions’ many years of deep expertise will provide clients with broad, industry-based analytics capabilities.”
“Converge is excited to add LPA Software Solutions to our ever-expanding team and array of solution capabilities,” stated Shaun Maine, CEO of Converge. “With 20+ years’ experience serving clients in the analytics space, we’re looking forward to folding in LPA’s advanced analytics knowledge and skills to our current offerings and are excited to grow Converge’s business intelligence, data, and AI practices alongside their team. LPA will enable us to continue to scale and grow our advanced analytics practice across North America.”
LPA generated revenue of approximately C$17 million with an adjusted EBITDA of C$2.1 million for the trailing twelve-month period ended August 31, 2021. Consideration for the purchase consisted of US$9.0 million in cash paid at closing and earn-out payments of up to US$3 million in aggregate, payable over two years. Assuming LPA achieves the minimum level of EBITDA to earn the full earn out, the purchase multiple for the transaction would be approximately 4.0 times EBITDA in the second year following closing. Assuming no earn out payments are made, the purchase multiple would be approximately 5.5 times adjusted EBITDA for the trailing twelve-month period ended August 31,2021, after adjusting for working capital. The cash portion of the purchase price was financed by Converge’s recently announced bought deal financing. The acquisition is expected to be immediately accretive to Converge, resulting in increased revenue and adjusted EBITDA.
LPA marks the twenty-fourth acquisition completed by Converge since October 2017. Converge’s family of companies also includes Corus Group, LLC; Northern Micro, Inc.; 10084182 Canada Inc. operating as Becker-Carroll; Key Information Systems, Inc.; BlueChip Tek, Inc.; Lighthouse Computer Systems, Inc.; Software Information Systems LLC.; Nordisk Systems, Inc.; Essex Technology Group, Inc.; Datatrend Technologies, Inc.; VSS, LLC; Solutions PCD, Inc.; Unique Digital, Inc.; Workgroup Connections, Inc.; Vivvo Application Studios LTD.; Vicom Computer Services, Inc.; CarpeDatum LLC; Accudata Systems, Inc.; Dasher Technologies, Inc.; ExactlyIT, Inc.; REDNET AG; Vicom Infinity, Inc.; and Infinity Systems Software, Inc.
LPA Software Solutions, LLC (“LPA”) provides consulting and professional services for AI, Business Intelligence (BI), Location Intelligence, Predictive Analytics, IoT, Geomapping, Data Prep, and Data Cleansing. LPA is a distinguished IBM Platinum Business Partner, assisting clients with software and services for Cognos Analytics, Planning Analytics for Financial Performance Management, Location Analytics, and IBM SPSS for Predictive Analytics. LPA helps organizations harness the power of data and information by developing solutions that ease the acquisition, sharing, and flow of data across the enterprise. LPA solutions help take the guesswork out of decision-making by arming executives, managers, and end-users with the insights they need to make fact-based assessments.
Converge Technology Solutions Corp. is a software-enabled IT & Cloud Solutions provider focused on delivering industry-leading solutions and services. Converge’s regional sales and services organizations deliver advanced analytics, cloud, and cybersecurity offerings to clients across various industries. The Company supports these solutions with managed services, digital infrastructure, and talent expertise offerings across all major IT vendors in the marketplace. This multi-faceted approach enables Converge to address the unique business and technology requirements for all clients in the public and private sectors. For more information, visit convergetp.com.
For further information contact:
Converge Technology Solutions Corp.
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