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.
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.
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SOURCE Converge Technology Solutions Corp.
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