CONVERGE TECHNOLOGY SECURES $500 MILLION LOAN TO CONTINUE ACQUISITION SPREE
Gatineau-headquartered IT and cloud solutions provider Converge Technology announced this week that it has refinanced an existing $300 million asset based-lending (ABL) credit facility with a new, five-year $500 million global revolving credit facility led by J.P. Morgan and the Canadian Imperial Bank of Commerce.
The Bank of Nova Scotia, the Toronto-Dominion Bank, and the Bank of Montréal are also participating in the lender group.
This new credit facility will also include an uncommitted accordion feature of $100 million, providing Converge with a total borrowing capacity of up to $600 million.
According to Converge, the expanded loan will allow the company to borrow in certain foreign currencies to fund its ongoing global expansion. The company added that the cost of borrowing and flexibility will be more favourable than the current ABL.
Founded in 2017, Converge aims to bring together IT providers, providing cloud platforms and services, blockchain technologies, resiliency solutions, and managed services. Converge also offers companies with access to business accelerators.
Converge began trading on the Toronto Stock Exchange in February last year, after graduation from the TSX Venture Exchange. The company also trades on the Frankfurt Stock Exchange as ‘OZB’ and on the OTCQX going by ‘CTSDF.’
For the full year of 2021, Converge reported that it accumulated $1.5 billion in net revenue with a 49 percent CAGR across three years. The company claims that it also has an adjusted EBITDA of $94 million, also with a 79 percent CAGR across a three-year period.
Most recently, Converge reached an agreement to acquire American company Technology Integration Group in May. Once the deal is completed, TIG would represent Converge’s 31st acquisition since October 2017.
Converge Technology has been doing a tremendous job in the field of IT solutions. I wish them nothing but success for the future.Shishir Gupta CEO & Founder Statuplanes
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