REGINA, SK and GATINEAU,
QC, Dec. 22, 2020 /CNW/
- Converge Technology Solutions Corp. ("Converge" or
"the Company") (TSXV: CTS) (FSE: 0ZB) (OTCQX: CTSDF)
announces that it has completed the acquisition of Vivvo
Application Studios Ltd. (Vivvo™), a Canadian technology innovation
organization that delivers a feature-rich, production-ready, proven
identity-management-as-a-service (IDMAAS) platform that enables and
accelerates digital transformation. Vivvo marks the sixteenth
acquisition announced by Converge.
The acquisition of Vivvo will accelerate the time to market for
Converge's TrustBuilder Platform, Converge's ground-breaking
Digital Identity and Privacy solution based in Gatineau and will further contribute to the
fast-emerging Gatineau innovation
ecosystem.
Vivvo was founded in 2015 by a leadership team with decades of
cumulative experience in both public and private sector
organizations. Since then, Vivvo has become a catalyst in the
transformation of government digital service delivery. Using the
Vivvo Trust Platform™, customers can easily move client-facing
services online using a single identity in a privacy-first,
consent-based model. This allows governments and enterprise
organizations to deliver services at scale to end users in a
cost-effective manner. Additionally, Vivvo is currently leveraging
its platform to develop a solution that could be used to issue and
validate proof of COVID-19 vaccination and immunity. It will be
submitting proposals to governments at all levels in Canada in the weeks to come. Vivvo currently
works with provinces, territories, and municipalities to accelerate
their digital transformation initiatives by leveraging its
innovative trust platform and personnel expertise.
"We provide our customers with a secure platform that affords
privacy and trust for digital service interactions. The Vivvo Trust
Platform™ enables an incremental, scaled approach for enterprises
to get services online quickly, securely, and with little to no
risk," said Rory Cain, Vivvo
Co-Founder. "There is more demand now than ever for solutions that
protect users' data with measures that don't encumber
utility. Joining the Converge family means that we can bring
those solutions to more customers across North America to make the data exchanged
between them and their end clients more secure and
streamlined."
"The Vivvo acquisition accelerates deployment of our Converge
TrustBuilder platform, and combined with the Vivvo Trust Platform™,
provides businesses and governments solutions that create trust
ecosystems," said Shaun Maine, CEO
of Converge. "A great example of this is the COVID vaccine passport
solution that the combined entities will be bringing to market
which can help governments keep their citizens safe by tracking and
providing timely verification, in an indisputable way, of who has
received an approved COVID-19 vaccine."
"The integration of Vivvo's solutions with our existing platform
and our ongoing research and development efforts in Gatineau will position Converge as a leader in
the next generation digital identity product market," said
Don Cuthbertson, CTO of Converge.
"We feel that the concept of trust ecosystems has broad
applications including enabling public sector organizations to
finally deliver the benefits of service transformation that
citizens have been expecting. With the potential of the
city being declared a Cybersecurity Innovation Zone,
Gatineau will be the epicenter of
this as we increase our product development footprint there in the
coming months."
Vivvo had trailing twelve month revenue of approximately
$1.85 million for the period ending
November 30, 2020. The purchase price
consisted of the following: (i) $2.5
million in cash at closing, after adjusting for excess
working capital; (ii) up to an aggregate of $3.0 million in earn-out payments for the three
years following closing of the acquisition based on the achievement
of certain milestones including the commercialization of the
combination of the Vivvo Trust Platform™ and the Converge
TrustBuilder Platform; and (iii) the issuance of 381,262 common
shares of Converge. Assuming the full earnout is earned, the
purchase multiple would equal 5 times Vivvo EBITDA in the third
year following closing.
Vivvo is the sixteenth acquisition announced 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 P.C.D., Inc.; Unique Digital, Inc.; Workgroup
Connections, Inc.; and will include Carpedatum Consulting Inc.
About Vivvo Application Studios
Vivvo™ is a technology
innovation company that delivers a feature-rich, production-ready,
proven platform that enables and accelerates digital
transformation. Through our flagship solution, the Vivvo Trust
Platform™, we provide the foundation for our customers to easily
move client facing services online using a single identity in a
privacy-first, consent-based model. For more information,
visit vivvo.com.
About Converge
Converge Technology Solutions Corp. is
a North American software-enabled, Hybrid IT solution provider
focused on delivering industry-leading solutions and services.
Converge's regional sales and services organizations deliver
advanced analytics, cloud, cybersecurity, and managed services
offerings to clients across various industries. The Company
supports these solutions with talent expertise and digital
infrastructure 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.
Notice to Reader: Use of Forward-Looking
Statements
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SOURCE Converge Technology Solutions Corp.