Converge and Essextec Enter Arrangement

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, Nov. 20, 2018 /CNW/ - Converge Technology Solutions Corp. ("Converge" or "Company") is pleased to announce that it has entered into a services agreement with Essex Technology Group, Inc. (Essextec), a Wall Street-based cloud, cognitive, and cybersecurity solution provider in the Northeast US, for the provision of, amongst other things, strategic and operational advice to Essextec. Converge expects to leverage Essextec's artificial intelligence, cybersecurity and data analytics offerings for use by Converge's existing customer base and to bring hybrid IT solutions across a range of vendors to Essextec's customer base, thereby adding value to both firms.  Essextec brings its customers intellectually curious and highly skilled teams made up of experienced technology and cybersecurity experts, business consultants, and industry thought leaders.  Converge is a leading hybrid IT solutions provider representing the intersection of innovation accelerators and foundational infrastructure infrastructure solutions.

In addition to the services agreement outlined above, Converge loaned CAD $5,250,000 to Essex Holdings Canada Inc. ("Essex Canada") in the form of a demand promissory note, the proceeds of which were used by Essex Canada to facilitate the acquisition by its wholly owned subsidiary Essextec Acquisition, LLC of Essextec and for general working capital purposes. 

"Our team at Essextec helps organizations solve IT challenges by applying innovative cloud, cognitive, and cybersecurity technologies. As trusted advisers, we consistently enable our clients to exceed their goals and objectives to ensure long-term success," said Jim Torney, CEO of Essextec. "Aligning with Converge both validates the strategic investments we have made in our Cloud, Cognitive, and Cybersecurity practices as well as enhances our value to customers with the additive capabilities of offerings such as blockchain."   

A significant participant in the IBM partner ecosystem, Essextec stays on the cutting edge, guiding customers through digital transformations with a focus on building secure cognitive applications in hybrid cloud environments. Whether working on-premise or in a public, private, or hybrid cloud environment, Essextec brings the skills and expertise to properly architect secure, effective solutions. Utilizing modern machine learning and artificial intelligence capabilities, the Essextec team leads customers in applying natural language processing, conversational user interfaces, voice interaction, image recognition, and text analytics to real business problems.

"We are thrilled for the Converge family of companies to have access to Essextec's capabilities for our customers and to make Converge's Hybrid IT services accessible to the Essextec customer base," said Shaun Maine, CEO of Converge Technology Solutions Corp. "Essextec has proven its ability to deliver Artificial Intelligence, CyberSecuity and Cognitive solutions to forward-thinking organizations, and we look forward to adding these to the Converge Hybrid IT capabilities and offerings."

Converge's portfolio of companies includes Corus Group, LLC; Northern Micro, Inc.; Becker-Carroll, Inc; Key Information Systems, Inc.; and BlueChipTek, Inc.

About Converge Technology Solutions Corp.

Converge Technology Solutions Corp. combines innovation accelerators and foundational infrastructure solutions to deliver best-of-breed solutions and services to customers. The Company is building a platform of regionally-focused Hybrid IT solutions providers to enhance their ability to provide multi-cloud solutions, blockchain, resiliency, and managed services, enabling Converge to address the business and IT issues that public and private-sector organizations face today.

For more information, visit http://www.convergetp.com.

About Essextec

Essextec is a Wall Street-based cloud, cognitive, and cybersecurity solutions provider. Essextec brings its customers a team of intellectually curious and highly skilled individuals made up of experienced technology and cybersecurity experts, business consultants, and industry thought leaders. For more information, visit http://www.essextec.com.

Forward-Looking Information

This press release contains certain "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation regarding Converge and its business. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected" "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts". "estimates", "believes" or intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could, "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Except as required by law, Converge assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available.

SOURCE Converge Technology Solutions Corp.

Mary Anne Palangio, Chief Financial Officer, Converge Technology Solutions Corp., [phone]; Jim Torney, Chief Executive Officer, Essex Technology Group, Inc., 1-888-519-1518