CTSDF - Converge Technology Solutions acquires three education market focused organizations

Converge Technology Solutions (OTCQX:CTSDF) entered into a definitive agreement to acquire Germany-based organizations Gesellschaft für digitale Bildung (“GfdB”), Institut für moderne Bildung (“IfmB”) and DEQSTER. Consideration for the purchase will consist of €25M in cash paid at closing based on a pro-rated EBITDA of €6.7M for FY22; additionally, three earnout payments of up to €5M each will be paid, the final earnout payment is contingent on achieving an adjusted EBITDA contribution of €10.8M in 2024. The purchase multiple would be ~4 times adj. EBITDA for the trailing 12-month period ended Dec. 31, 2024. The acquisition is expected to be immediately accretive to Converge, resulting in increased revenue and adj. EBITDA. GfdB, IfmB, and DEQSTER are all education market focused organizations enabling schools and universities to implement their digital future; GfdB and IfmB are full-service IT suppliers for education. GfdB and IfmB are full-service IT suppliers for education of ~$106M for trailing 12-month period ended Mar.31, 2022.

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Converge Technology Solutions acquires three education market focused organizations