Converge Technology Solutions announced on Dec. 22 that it has completed the acquisition of Vivvo Application Studios. Shares of the North American IT solution provider closed 5.3% higher on Tuesday.
Vivvo is a Canadian technology innovation company, which helps businesses fast-track their digital transformation.
“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 Converge Technology (TSE: CTS) CTO Don Cuthbertson.
Converge noted that the Vivvo acquisition will accelerate the marketing of its TrustBuilder Platform, Digital Identity and Privacy solution offerings based in Gatineau.
Earlier this week, Echelon Wealth Partners analyst Rob Goff reiterated a speculative Buy rating on the stock and raised the price target from C$4.60 to C$4.90.
Goff is enthusiastic about the company’s strategic accretive acquisitions, including IBM Analytics consulting and Alteryx Preferred Partner CarpeDatum Consulting, and the geographical synergies they will generate. (See TSE: CTS stock analysis on TipRanks)
“We expect the move to strengthen CTS’ relationship with IBM (IBM) as it is a core component of CarpeDatum while introducing CTS to Alteryx. The business is roughly evenly split across the three locations. The locations can leverage CTS’s operations in Denver (Corus360, Workgroup Connections), LA (KeyInfo) and its recently acquired Unique Digital in Texas,” Goff wrote in a note to investors.
“As per its model, CTS has been working with CarpeDatum over the past 6 months and is confident in cross-selling revenues extending in both directions. CarpeDatum’s financial planning software and high-end consulting will align with CTS’ analytics capabilities and IBM software stack.” the analyst added.
From the rest of the Street, the stock scores a Strong Buy analyst consensus based on 3 unanimous Buys. The average price target of C$5.03 implies upside potential of 20% to current levels.
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