Converge Technology Solutions Corp. (TSX:CTS) acquired PDS Holding Company and its subsidiaries from Mason Wells, Inc. for $52 million on January 7, 2022. Consideration for the purchase consisted of $52 million in cash paid at closing. Positive net working capital was also paid out at closing. The purchase multiple would be approximately 5.8 times adjusted EBITDA for the trailing twelve-month period ended November 30, 2021. The cash portion of the purchase price was financed by Converge's recent equity. Paragon Development Systems, Inc. generated revenue of approximately $187 million (CAD 239 million) with an adjusted EBITDA of $8.9 million (CAD 11.4 million) for the trailing twelve-month period ended November 30, 2021. The acquisition is expected to be immediately accretive to Converge, resulting in increased revenue and adjusted EBITDA. Canaccord Genuity Group served as the exclusive financial advisor to Paragon Development Systems Inc. and Mason Wells. Martin Wolf LLC served as financial advisor while Jordan Taylor, Christine Gay and Bill Sherman of Holland & Knight LLP served as legal advisor for Converge Technology Solutions Corp. in the transaction.

Converge Technology Solutions Corp. (TSX:CTS) completed the acquisition of PDS Holding Company from Mason Wells, Inc. on January 7, 2022.