ConvergeOne Exploring Sale: Report

Midwest solution provider ConvergeOne could be putting itself up for auction, according to a Reuters report.

The Eagan, Minn.-based services giant -- No. 34 on the 2018 CRN Solution Provider 500 – went public earlier this year and is majority owned by Clearlake Capital Group, which declined comment on the report. CRN has reached out to ConvergeOne for comment.

According to Reuters, ConvergeOne is exploring a sale after attracting takeover interest from private equity firms. Clearlake is working with Raymond James Financial Inc. on an auction for the company, the report stated.

Raymond James declined to comment when reached by CRN. The source who spoke to Reuters said no deal is certain.

ConvergeOne went public in February trading on the Nasdaq under the symbol CVON. The company’s shares were up nearly 5 percent to $8.93 in early afternoon trading. The firm plans to release its earnings on Oct. 30.

Since 2009, ConvergeOne has been busy in the M&A department, acquiring and integrating 13 different solution providers in that time.

At the beginning of the month, ConvergeOne, acquired Advantel Networks, in a move that expands the company’s customer base on the West Coast, a region that – at the time of the announcement -- ConvergeOne CEO John A. McKenna Jr. called a “key area” for the company’s growth plans.

In March, ConvergeOne purchased Arrow Electronics’s systems integration business.

Earlier acquisitions included the $300 million networking company Strategic Products and Services (SPS), an MSP that was No. 74 on the 2017 CRN Solution Provider 500; Cisco gold partner Annese and communications and data solutions powerhouse Sigmanet.

ConvergeOne bills itself as a trusted adviser to more than 10,000 customers, including 62 percent of the Fortune 100 and 48 percent of the Fortune 500 customers across the healthcare, finance, manufacturing, education and energy industries, the company said in a statement.